Does Dermani Medspa's acceptance of payments after a breach constitute a waiver of rights?
Dermani_Medspa Franchise · 2025 FDDAnswer from 2025 FDD Document
- 18.2.2.
We and you will not waive or impair any right, power, or option this Agreement reserves (including, without limitation, 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, including any System Standard; our waiver of or failure to exercise any right, power, or option, whether of the same, similar, or different nature, with other Franchised Businesses and Medspas; the existence of franchise agreements for other Franchised Businesses which contain provisions different from those contained in this Agreement; or our acceptance of any payments due from you after any breach of 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 66–311)
What This Means (2025 FDD)
According to Dermani Medspa's 2025 Franchise Disclosure Document, Dermani Medspa's acceptance of payments from a franchisee after a breach of the franchise agreement does not constitute a waiver or impairment of any right, power, or option that Dermani Medspa has under the agreement. This includes Dermani Medspa's right to demand compliance with all terms, conditions, and covenants, and to declare a breach as a default, potentially leading to termination of the agreement.
This provision protects Dermani Medspa from inadvertently relinquishing its rights by continuing to accept payments while addressing a franchisee's breach. It also states that special endorsements on checks will not be considered a waiver or settlement. Dermani Medspa is authorized to remove any such endorsements, rendering them ineffective.
This type of clause is common in franchise agreements to ensure that the franchisor retains its rights and options despite ongoing business interactions with the franchisee, even during periods of non-compliance. Prospective Dermani Medspa franchisees should be aware that Dermani Medspa's acceptance of payments does not prevent them from enforcing the franchise agreement's terms and conditions.