Can Golden Krust Caribbean Restaurant unilaterally reduce any obligation of the franchisee under the agreement?
Golden_Krust_Caribbean_Restaurant Franchise · 2024 FDDAnswer from 2024 FDD Document
We and you may by written instrument unilaterally waive or reduce any obligation of or restriction upon the other under this Agreement, effective upon delivery of written notice thereof to the other of such other effective date stated in the notice of waiver. Any waiver we grant will be without prejudice to any other rights we may have, will be subject to our continuing review and may be revoked, in our sole discretion, at any time and for any reason, effective upon delivery to you of ten (10) days' prior written notice.
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. No special or restrictive legend or endorsement on any check or similar item given to us will constitute a waiver, compromise, settlement or account and satisfaction. We are authorized to remove or obliterate any legend or endorsement, and such legend or endorsement will have no effect.
Source: Item 22 — CONTRACTS (FDD page 35)
What This Means (2024 FDD)
According to the 2024 Golden Krust Caribbean Restaurant Franchise Disclosure Document, Golden Krust Caribbean Restaurant can unilaterally waive or reduce any obligation or restriction upon the franchisee under the Franchise Agreement. This becomes effective upon delivery of written notice to the franchisee or on another effective date stated in the notice of waiver. However, any waiver granted by Golden Krust Caribbean Restaurant is without prejudice to any other rights they may have, is subject to continuing review, and may be revoked at any time and for any reason at their sole discretion. This revocation is effective upon delivery to the franchisee of ten days' prior written notice.
Furthermore, Golden Krust Caribbean Restaurant will not be deemed to have waived or impaired any right, power, or option reserved by the agreement due to various factors. These include customs or practices that differ from the agreement's terms, failure to exercise any right under the agreement, waivers, delays, or omissions regarding other Golden Krust Restaurants, the existence of different provisions in other franchise agreements, or acceptance of payments after a breach of the agreement. Any special or restrictive legends on checks given to Golden Krust Caribbean Restaurant will not constitute a waiver or settlement, and Golden Krust Caribbean Restaurant is authorized to remove or obliterate any such legends.
This clause provides Golden Krust Caribbean Restaurant with significant flexibility in enforcing the Franchise Agreement, as they can choose to waive or reduce obligations temporarily or permanently, but retain the right to reinstate them. For a prospective franchisee, this means that any leniency shown by Golden Krust Caribbean Restaurant at one point does not set a precedent, and the franchisee must always be prepared to comply fully with all terms of the agreement. It is important for franchisees to maintain open communication with Golden Krust Caribbean Restaurant to understand their current stance on any specific obligations and to seek clarification on any potential changes or waivers.