Does Golden Krust Caribbean Restaurant's acceptance of payments after a breach constitute a waiver?
Golden_Krust_Caribbean_Restaurant Franchise · 2024 FDDAnswer from 2024 FDD Document
We and you will not be deemed to have waived or impaired any right, power or option reserved by this Agreement (including, without limitation, the right to demand exact compliance with every term, condition and covenant herein or to declare any breach thereof to be a default and to terminate this Agreement prior to the expiration of its term)-by virtue of any custom or practice at variance with the terms hereof; our or your failure, refusal or neglect to exercise any right under this Agreement or to insist upon exact compliance by the other with our and your obligations hereunder, including, without limitation, any System Standard; our waiver, forbearance, delay, failure or omission to exercise any right, power or option, whether of the same, similar or different nature, with respect to other Golden Krust Restaurants; the existence of other franchise agreements for Golden Krust Restaurants which contain different provisions from those contained herein; or our acceptance of any payments due from you after any breach of this Agreement.
Source: Item 22 — CONTRACTS (FDD page 35)
What This Means (2024 FDD)
According to the 2024 Golden Krust Caribbean Restaurant Franchise Disclosure Document, the acceptance of payments from a franchisee after a breach of the franchise agreement does not constitute a waiver of Golden Krust Caribbean Restaurant's rights. This means that even if Golden Krust Caribbean Restaurant continues to accept payments after a franchisee violates the agreement, they still retain the right to enforce the terms of the agreement and pursue remedies for the breach.
This provision protects Golden Krust Caribbean Restaurant's ability to address breaches without inadvertently relinquishing their legal rights. It allows them to continue receiving payments while simultaneously addressing the franchisee's non-compliance. This is particularly important in franchise systems where consistent adherence to standards and payment obligations are crucial for maintaining brand integrity and financial stability.
For a prospective Golden Krust Caribbean Restaurant franchisee, this clause highlights the importance of strict compliance with the franchise agreement. Franchisees cannot assume that continued acceptance of payments by Golden Krust Caribbean Restaurant implies forgiveness or waiver of any breaches. Franchisees should address any compliance issues promptly to avoid potential enforcement actions, even if payments are being accepted. This clause is fairly standard in franchise agreements, intended to protect the franchisor's rights and ensure consistent enforcement of the agreement's terms.