Under what conditions can Cicis or the franchisee unilaterally waive or reduce an obligation under the franchise agreement?
Cicis Franchise · 2025 FDDAnswer from 2025 FDD Document
We and you may by written instrument unilaterally waive or reduce any obligation of or restriction upon the other under this Agreement, effective upon delivery of written notice to the other or another effective date stated in the notice of waiver. Any waiver granted will be without prejudice to any other rights we or you have, will be subject to continuing review, and may be revoked at any time and for any reason effective upon delivery of 10 days' prior written notice.
We and you will not waive or impair any right, power, or option this Agreement reserves (including our right to demand exact compliance with every term, condition, and covenant or to declare any breach to be a default and to terminate this Agreement before its term expires) because of any custom or practice at variance with this Agreement's terms; our or your failure, refusal, or neglect to exercise any right under this Agreement or to insist upon the other's compliance with this Agreement. No special or restrictive legend or endorsement on any check or similar item given to us will be a waiver, compromise, settlement, or accord and satisfaction. We are authorized to remove any legend or endorsement, which then will have no effect.
Source: Item 23 — RECEIPTS (FDD pages 65–263)
What This Means (2025 FDD)
According to Cicis's 2025 Franchise Disclosure Document, both Cicis and the franchisee have the ability to unilaterally waive or reduce obligations under the franchise agreement. This can be done through a written instrument, which becomes effective upon delivery of written notice to the other party or on another effective date stated in the waiver notice.
Any waiver granted is not absolute. It is subject to ongoing review and can be revoked at any time, for any reason. To revoke a waiver, the revoking party must provide 10 days' prior written notice to the other party. This ensures that neither party can claim a permanent alteration of the agreement based on a temporary allowance.
Furthermore, the FDD states that neither Cicis nor the franchisee will waive or impair any right, power, or option reserved in the agreement due to custom, practice, or failure to exercise a right. This includes the right to demand exact compliance with every term and condition. This clause reinforces the importance of the written agreement and prevents implied waivers based on past conduct. Cicis is also authorized to remove any special or restrictive legends or endorsements on checks, which will then have no effect, ensuring that such notations do not constitute a waiver or settlement.