Does Cicis' acceptance of late payments waive any preceding breach of the franchisee's obligations?
Cicis Franchise · 2025 FDDAnswer from 2025 FDD Document
No delay, waiver, omission, or forbearance to exercise any right, option, duty, or power arising out of any breach or default by a party will constitute a waiver of the right to enforce any such right, option, duty, or power, or as to a subsequent breach or default. Acceptance by us of any payments after their due date will not be deemed a waiver of any preceding breach of your or your related parties' obligations however those obligations arise.
Source: Item 22 — CONTRACTS (FDD pages 64–65)
What This Means (2025 FDD)
According to Cicis' 2025 Franchise Disclosure Document, the acceptance of late payments does not constitute a waiver of any preceding breach of the franchisee's obligations. Specifically, the franchise agreement states that Cicis' acceptance of payments after their due date will not be considered a waiver of any prior breaches of the franchisee's obligations. This applies to all obligations, regardless of how they arise.
This provision protects Cicis by ensuring that they can accept late payments without losing their right to enforce the original terms of the franchise agreement. For a franchisee, this means that even if Cicis accepts a late payment, they still retain the right to take action regarding any earlier violations of the agreement. This could include actions related to operational standards, required payments, or any other aspect of the franchise agreement.
This type of 'no waiver' clause is common in franchise agreements. It allows the franchisor some flexibility in working with franchisees who may occasionally have difficulty meeting deadlines without setting a precedent that weakens the overall contract. Franchisees should be aware that Cicis can still enforce the original terms of the agreement, even if they have accepted late payments in the past.