How can Cost Cutters Family Hair Salon waive an obligation or restriction upon the franchisee?
Cost_Cutters_Family_Hair_Salon Franchise · 2024 FDDAnswer from 2024 FDD Document
- 24.3 WAIVER. COST CUTTERS and the FRANCHISEE may, by written instrument signed by COST CUTTERS and the FRANCHISEE, waive any obligation of or restriction upon the other under this Agreement.
Acceptance by COST CUTTERS of any payment by the FRANCHISEE and the failure, refusal or neglect of COST CUTTERS to exercise any right under this Agreement or to insist upon full compliance by the FRANCHISEE of its obligations hereunder including, without limitation, any mandatory specification, standard or operating procedure, will not constitute a waiver by COST CUTTERS of any provision of this Agreement.
COST CUTTERS will have the right to waive obligations or restrictions for other franchisees under their Franchise Agreements without waiving those obligations or restrictions for the FRANCHISEE and, except to the extent provided by law, COST CUTTERS will have the right to negotiate terms and conditions, grant concessions and waive obligations
Source: Item 23 — RECEIPT (FDD pages 76–439)
What This Means (2024 FDD)
According to Cost Cutters Family Hair Salon's 2024 Franchise Disclosure Document, Cost Cutters Family Hair Salon and the franchisee can waive any obligation or restriction upon the other under the Franchise Agreement. This waiver must be documented through a written instrument that is signed by both Cost Cutters Family Hair Salon and the franchisee.
It is important to note that Cost Cutters Family Hair Salon's acceptance of any payment from the franchisee, or their failure to enforce any right under the agreement, does not constitute a waiver of any provision within the agreement. This means that even if Cost Cutters Family Hair Salon doesn't strictly enforce every requirement, they still retain the right to do so in the future.
Furthermore, Cost Cutters Family Hair Salon has the right to offer waivers, negotiate different terms, and grant concessions to other franchisees without extending the same benefits to all franchisees. This implies that franchisees may not always be treated equally, and a franchisee cannot claim liability against Cost Cutters Family Hair Salon if other franchisees receive more favorable terms. This is a common practice in franchising, allowing franchisors flexibility in adapting to different market conditions or franchisee circumstances.