Does a waiver of a breach of one provision in the Exit agreement constitute a waiver of subsequent breaches?

According to Exit's 2025 Franchise Disclosure Document, a waiver of any breach of the franchise agreement does not constitute a waiver of any subsequent breaches. This means that even if Exit overlooks or chooses not to enforce a specific violation of the agreement at one point, it does not forfeit its right to enforce the same or other provisions in the future.

This provision protects Exit's ability to maintain standards and enforce the franchise agreement consistently. It prevents a franchisee from arguing that a past instance of leniency sets a precedent for future violations. For a prospective Exit franchisee, this underscores the importance of adhering to all terms of the franchise agreement, as past waivers do not guarantee future acceptance of breaches.

This type of clause is standard in franchise agreements. It ensures that the franchisor retains the right to enforce its brand standards and contractual obligations, even if it has previously shown flexibility in certain situations. Franchisees should be aware that franchisors can selectively enforce agreements, and a past waiver does not prevent future enforcement.