factual

If City Publications accepts payment after a breach by the franchisee, is this considered a waiver of the breach?

City_Publications Franchise · 2025 FDD

Answer 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 after a franchisee breach does not automatically constitute a waiver of that breach. City Publications retains its right to pursue remedies for the breach, even after accepting payment.

This provision protects City Publications' ability to enforce the franchise agreement, even if they accept payments from a franchisee who is in default. This is a fairly standard clause in franchise agreements, as franchisors need to maintain consistent standards across all franchise locations to protect the brand.

For a prospective City Publications franchisee, this means that simply making payments will not excuse any prior breaches of the franchise agreement. City Publications can still take action against the franchisee for those breaches, even while accepting current or subsequent payments. Franchisees need to ensure they are in full compliance with the franchise agreement to avoid potential issues, as later payments will not absolve earlier breaches.

It is important for franchisees to maintain open communication with City Publications and address any potential breaches promptly to mitigate possible repercussions. Franchisees should also seek legal counsel to fully understand their rights and obligations under the franchise agreement.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.