Does the acceptance of payments by City Publications constitute a waiver of any preceding breach by the franchisee?
City_Publications Franchise · 2025 FDDAnswer from 2025 FDD Document
Subsequent acceptance by Franchisor of any payment(s) due to it hereunder shall not be deemed to be a waiver by Franchisor of any preceding breach by Franchisee of any terms, covenants or conditions of this Agreement.
Source: Item 23 — RECEIPT (FDD pages 39–129)
What This Means (2025 FDD)
According to City Publications' 2025 Franchise Disclosure Document, the acceptance of payments by City Publications does not constitute a waiver of any prior breach by the franchisee. City Publications retains its right to demand strict compliance with the franchise agreement's terms, and any failure to exercise a power or insist on compliance does not waive this right.
Specifically, even if City Publications accepts payments from a franchisee, this acceptance does not mean that City Publications is waiving any prior violations or breaches of the franchise agreement by the franchisee. This protects City Publications' ability to address past issues, even while continuing to receive payments.
This clause is common in franchise agreements to protect the franchisor's rights. It ensures that City Publications can address any ongoing or previous breaches, even if they continue to accept payments. However, City Publications must provide written notice, executed by an authorized party, to waive a specific default. This protects the franchisee by requiring City Publications to formally document any waiver of a specific default.