Does Dermani Medspa waive any rights by accepting payments after a breach of the Franchise 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.
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 of any of its rights. Dermani Medspa retains the right to demand strict compliance with all terms, conditions, and covenants within the agreement, and can still declare a breach and terminate the agreement, even after accepting payments. This protects Dermani Medspa from inadvertently relinquishing its rights due to ongoing business interactions with a franchisee who may be in violation of the agreement.
This provision also clarifies that any custom or practice that deviates from the agreement's terms does not set a precedent or waive Dermani Medspa's right to enforce the original terms. Similarly, the franchisor's failure to exercise a right or insist on compliance at one point does not prevent them from doing so later. This ensures that Dermani Medspa can address breaches as they see fit without being bound by past leniency or oversights.
Furthermore, any special or restrictive endorsements on checks or payment items submitted by the franchisee will not be considered a waiver, compromise, or settlement. Dermani Medspa is authorized to remove such endorsements, rendering them ineffective. This prevents franchisees from attempting to unilaterally alter the terms of the agreement through payment conditions. This section of the FDD is designed to protect Dermani Medspa's rights and ensure consistent enforcement of the franchise agreement, regardless of payment history or other interactions with the franchisee.