If Extreme Art Studio grants a waiver, does it affect their other rights?
Extreme_Art_Studio Franchise · 2024 FDDAnswer from 2024 FDD Document
- 17.2.1 We and you may, by written instrument, unilaterally waive or reduce any obligation of or restriction upon the other under this Franchise Agreement, effective upon delivery of written notice to the other or another effective date stated in the notice of waiver.
Any waiver granted will be without prejudice to any other rights we or you have, will be subject to continuing review, and may be revoked at any time and for any reason effective upon delivery of ten days' prior written notice.
- 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, any waiver that Extreme Art Studio grants to a franchisee does not negatively impact their other rights. Extreme Art Studio's ability to exercise all rights, powers, and options under the franchise agreement remains intact, regardless of any waivers granted. This includes the right to demand strict compliance with every term and condition, declare breaches as defaults, and terminate the agreement.
This provision protects Extreme Art Studio from inadvertently relinquishing rights through custom, practice, or previous leniency. For example, if Extreme Art Studio doesn't enforce a specific system standard for one franchisee, it doesn't prevent them from enforcing it for others. Similarly, accepting late payments doesn't waive their right to demand timely payments in the future.
This clause also clarifies that any special endorsements on checks or other payment items do not constitute a waiver or settlement unless explicitly agreed upon by Extreme Art Studio. Extreme Art Studio retains the authority to remove such endorsements, ensuring they have no effect. This protects Extreme Art Studio from franchisees attempting to unilaterally alter the terms of the agreement through payment notations.
For a prospective franchisee, this means that any negotiated waiver should be carefully documented and understood, as Extreme Art Studio retains the right to revoke it with ten days' written notice. It also highlights the importance of adhering to all terms of the franchise agreement, as past leniency does not guarantee future flexibility.