Is Extreme Art Studio required to exercise every right under 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.
Source: Item 22 — CONTRACTS (FDD page 49)
What This Means (2024 FDD)
According to Extreme Art Studio's 2024 Franchise Disclosure Document, neither Extreme Art Studio nor the franchisee is obligated to exercise every right, power, or option reserved in the Franchise Agreement. Extreme Art Studio retains the right to demand exact compliance with every term, condition, and covenant, and to declare any breach a default, potentially leading to termination of the agreement before its term expires.
The Franchise Agreement specifies that Extreme Art Studio's failure, refusal, or neglect to exercise any right, or to insist upon the franchisee's compliance with the agreement, including any System Standard, does not constitute a waiver or impairment of any right, power, or option. This also applies to Extreme Art Studio's waiver of or failure to exercise any right with other Extreme Art Studio Businesses, or the existence of franchise agreements for other Extreme Art Studio Businesses with different provisions.
This clause protects Extreme Art Studio's ability to enforce the Franchise Agreement strictly, even if they have not always done so in the past. It also ensures that accepting payments from the franchisee after a breach does not waive Extreme Art Studio's right to address the breach. This provision is common in franchise agreements to maintain the franchisor's flexibility in managing the franchise system and enforcing brand standards.