Can Hyper Kidz reduce the scope of any covenant in the agreement, and if so, what is the condition for this?
Hyper_Kidz Franchise · 2024 FDDAnswer from 2024 FDD Document
22.1 Waiver of Obligations
- 22.1.1 We and you may by written instrument unilaterally waive or reduce any obligation of or restriction upon the other under this Agreement. Such waiver shall be effective upon delivery of written notice thereof to the other or such other effective date stated in the notice of waiver. Whenever this Agreement requires our prior approval or consent, you shall make a timely written request therefor and such approval shall be obtained in writing.
- 22.1.2 We make no warranties or guarantees upon which you may rely and assume no liability or obligation to you by granting any waiver, approval, or consent to you or by reason of any neglect, delay, or denial of any request therefor. Any waiver granted by us shall be without prejudice to any other rights we may have, will be subject to continuing review by us 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.
- 22.1.3 We and you shall 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 (a) custom or practice of the parties at variance with the terms hereof; (b) any failure, refusal, or neglect of us or you to exercise any right under
Source: Item 22 — CONTRACTS (FDD page 52)
What This Means (2024 FDD)
According to Hyper Kidz's 2024 Franchise Disclosure Document, both Hyper Kidz and the franchisee can unilaterally waive or reduce any obligation or restriction upon the other under the Franchise Agreement. This waiver must be documented in writing. The waiver becomes effective once written notice is delivered to the other party, or on another effective date as specified in the waiver notice.
Hyper Kidz makes no guarantees or assumes any liability by granting any waiver, approval, or consent. Any waiver granted by Hyper Kidz is subject to continuing review and may be revoked at any time, for any reason, with ten days' prior written notice to the franchisee.
The agreement also specifies that neither party is deemed to have waived any right or power reserved by the agreement due to customs, failure to exercise rights, or any delay or omission in exercising those rights. This includes the right to demand exact compliance with every term, condition, and covenant, ensuring that Hyper Kidz retains its ability to enforce the agreement fully despite any prior waivers or modifications.