What is the effect of a custom or practice that varies from the terms of the Extreme Art Studio 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.
Source: Item 22 — CONTRACTS (FDD page 49)
What This Means (2024 FDD)
According to Extreme Art Studio's 2024 Franchise Disclosure Document, a custom or practice that deviates from the Franchise Agreement's terms does not waive or impair any right, power, or option reserved in the agreement. This means that even if Extreme Art Studio or the franchisee engages in actions or behaviors that are different from what is stipulated in the agreement, it does not prevent either party from demanding strict compliance with every term, condition, and covenant in the future.
This provision protects Extreme Art Studio's right to insist on exact compliance with the agreement at any time, regardless of past practices. It also clarifies that the failure to exercise a right or insist on compliance does not constitute a waiver. This includes the right to declare any breach a default and terminate the Franchise Agreement before its term expires.
For a prospective Extreme Art Studio franchisee, this means that they cannot rely on any perceived leniency or deviation from the written agreement as a basis for non-compliance. The franchisee must adhere strictly to the terms of the Franchise Agreement, as past customs or practices will not protect them from potential enforcement actions by Extreme Art Studio. This clause is common in franchise agreements to protect the franchisor's brand standards and legal rights.