Will City Wide's actions to resolve a termination dispute be considered a waiver of their rights?
City_Wide Franchise · 2025 FDDAnswer from 2025 FDD Document
of Franchisee to remove and repossess any products and goods in which CITY WIDE has been granted a security interest, without notice to Franchisee. Franchisee waives and releases CITY WIDE from all claims in connection with or arising from such entering and removal. At CITY WIDE's request following an event of default, Franchisee will assemble and make available to CITY WIDE all products and goods in which CITY WIDE has been granted a security interest, at a place to be designated by CITY WIDE which is convenient to both parties.
- 14.6 No Waiver. All acts of CITY WIDE undertaken in the course of efforts to resolve a termination dispute, or a dispute for which termination is a possible remedy, will be deemed to have been undertaken without prejudice to the rights asserted by CITY WIDE and will not constitute a waiver or relinquishment of those rights. In the event Franchisee continues to engage in the Franchised Business while the dispute is pending, that fact, and/or the receipt of monthly payments and the furnishing by CITY WIDE of information and services essential to such operation, will not constitute a waiver or relinquishment of CITY WIDE's rights. CITY WIDE may, at its option and without waiving its right to terminate, seek any form of relief or remedy available to it under common law or statute for any breach of this Agreement, including, but not limited to, the right to damages, injunctive relief, and declaratory orders for specific performance.
- 14.7 Applicable Law.
Source: Item 22 — CONTRACTS (FDD page 65)
What This Means (2025 FDD)
According to City Wide's 2025 Franchise Disclosure Document, City Wide's efforts to resolve a termination dispute will not be considered a waiver of their rights. All actions undertaken by City Wide to resolve a termination dispute, or a dispute for which termination is a possible remedy, are considered to be without prejudice to the rights asserted by City Wide and will not constitute a waiver or relinquishment of those rights.
Even if the franchisee continues to operate the franchised business while a dispute is pending, this fact, along with City Wide's receipt of monthly payments and provision of essential information and services, will not be considered a waiver of City Wide's rights. City Wide retains the option to seek any form of relief or remedy available under common law or statute for any breach of the agreement, including damages, injunctive relief, and declaratory orders for specific performance, without waiving its right to terminate the agreement.
Additionally, the franchise agreement states that the failure of City Wide to exercise any power reserved to it, or any custom or practice of the parties at variance with the terms of the agreement, does not constitute a waiver of City Wide's right to demand exact compliance with the terms. No waiver or approval by City Wide of any breach or default by the franchisee, nor any delay, forbearance, or omission by City Wide to act or give notice of default, nor acceptance of payments due, will be considered a waiver of any preceding or subsequent breach or default by the franchisee.