Can Extreme Art Studio unilaterally modify the terms of the Franchise Agreement?
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.
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 and the franchisee can, through a written instrument, unilaterally waive or reduce any obligation or restriction upon the other under the Franchise Agreement. This becomes effective upon delivery of written notice or another effective date stated in the notice of waiver. However, any waiver granted is subject to continuing review and can be revoked at any time for any reason with ten days' prior written notice.
This means that while some terms can be adjusted, Extreme Art Studio retains the right to change its mind and reinstate the original terms with a relatively short notice period. This clause provides flexibility but also introduces an element of uncertainty for the franchisee, as previously waived obligations could be reimposed.
Furthermore, the Franchise Agreement specifies that Extreme Art Studio's failure to enforce any right or insist on compliance with the agreement's terms does not constitute a waiver of those rights. This includes the right to demand exact compliance with every term, condition, and covenant, or to declare any breach a default and terminate the agreement. The existence of different provisions in other franchisees' agreements also does not affect the enforceability of the current agreement.
This section of the Extreme Art Studio Franchise Agreement emphasizes the importance of franchisees understanding that any deviations from the written agreement must be formally documented and acknowledged, and even then, these deviations can be reversed by Extreme Art Studio. Franchisees should be aware of this clause and its implications for their business operations.