Does Dermani Medspa waive its rights by accepting payments after a breach of the agreement?
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.
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 agreement does not constitute a waiver of their rights. This means that even if Dermani Medspa continues to accept payments, they still retain the right to enforce the terms of the franchise agreement and address any breaches.
This provision protects Dermani Medspa from inadvertently relinquishing their rights due to ongoing business interactions with a franchisee who may be in violation of the agreement. It allows Dermani Medspa to continue receiving payments while simultaneously addressing the breach, up to and including termination of the agreement if the breach is not cured. This is a common practice in franchising, as it allows the franchisor flexibility in managing franchisee compliance without immediately resorting to termination.
For a prospective Dermani Medspa franchisee, this clause highlights the importance of adhering to all terms and conditions of the franchise agreement. Even if Dermani Medspa accepts payments, they can still take action regarding any breaches. Franchisees should ensure they understand their obligations and maintain open communication with Dermani Medspa to address any potential issues proactively. This clause underscores the need for franchisees to prioritize compliance and seek clarification from Dermani Medspa on any ambiguous points in the agreement.