What are the consequences if Extreme Art Studio fails to insist on compliance with the Franchise Agreement?
Extreme_Art_Studio Franchise · 2024 FDDAnswer from 2024 FDD Document
- 17.2.2 We and you will not waive or impair any right, power or option this Franchise 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 Franchise Agreement before its term expires) because of any custom or practice at variance with this Franchise Agreement's terms; our or your failure, refusal or neglect to exercise any right under this Franchise Agreement, or to insist upon the other's compliance with this Franchise Agreement, including, without limitation, 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 Extreme Art Studio Businesses; the existence of franchise agreements for other Extreme Art Studio Businesses which contain provisions different from those contained in this Franchise Agreement; or our acceptance of any payments due from you after any breach of this Franchise 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 22 — CONTRACTS (FDD page 49)
What This Means (2024 FDD)
According to the 2024 Extreme Art Studio Franchise Disclosure Document, Extreme Art Studio's failure to insist on a franchisee's compliance with the Franchise Agreement does not constitute a waiver of its rights. Specifically, Extreme Art Studio retains the right to demand exact compliance with every term, condition, and covenant outlined in the agreement. This includes the right to declare any breach as a default and to terminate the Franchise Agreement before its term expires. This is regardless of any custom or practice that deviates from the agreement's terms or any previous failure by Extreme Art Studio to enforce its rights.
This provision protects Extreme Art Studio from inadvertently losing its contractual rights due to leniency or oversight. For a franchisee, this means that even if certain standards or practices are not consistently enforced, Extreme Art Studio can still demand strict compliance at any time. Franchisees cannot assume that a lack of enforcement in the past will prevent Extreme Art Studio from enforcing every single term in the future.
Furthermore, the Franchise Agreement specifies that accepting payments from a franchisee after a breach does not waive Extreme Art Studio's right to address that breach. Also, any special or restrictive legends on checks or payments made by the franchisee will not be considered a waiver or compromise unless explicitly agreed upon by Extreme Art Studio. Extreme Art Studio is authorized to remove any such legends, rendering them ineffective. This ensures that Extreme Art Studio maintains its ability to enforce the Franchise Agreement fully, regardless of past actions or accepted payments.