Under what circumstances does Extreme Art Studio have the right to refuse a franchisee's request?
Extreme_Art_Studio Franchise · 2024 FDDAnswer from 2024 FDD Document
17.2 WAIVER OF OBLIGATIONS.
- 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, Extreme Art Studio has broad rights regarding obligations and restrictions. Specifically, Extreme Art Studio can unilaterally waive or reduce any obligation or restriction upon the franchisee under the Franchise Agreement by providing written notice. This waiver does not compromise any other rights and is subject to ongoing review, meaning Extreme Art Studio can revoke it at any time, for any reason, with ten days' prior written notice.
Extreme Art Studio's rights are further protected, as their failure to enforce strict compliance with every term, condition, and covenant does not constitute a waiver of their rights. This includes the right to declare any breach a default and terminate the Franchise Agreement. This holds true regardless of any custom or practice that deviates from the agreement's terms, or if Extreme Art Studio has similar agreements with different provisions with other franchisees.
Furthermore, acceptance of payments from the franchisee after a breach of the Franchise Agreement does not prevent Extreme Art Studio from exercising its rights. Any special or restrictive legends or endorsements on checks or similar items given to Extreme Art Studio will not be considered a waiver, compromise, settlement, or accord and satisfaction, and Extreme Art Studio is authorized to remove any such legend or endorsement, rendering it ineffective. These stipulations reinforce Extreme Art Studio's ability to maintain control and enforce the Franchise Agreement as they see fit.