What is the effect of a signed written instrument waiving an obligation in the Management Recruiters Franchise Agreement?
Management_Recruiters Franchise · 2024 FDDAnswer from 2024 FDD Document
- 22.2. Waiver. Franchisor or Franchisee may unilaterally waive or reduce any obligation of or restriction upon the other only by a signed written instrument. Such waiver shall take effect upon delivery of the instrument to the other or such other date stated in the instrument. Any waiver shall be without prejudice to the waiving party's other rights and shall be subject to continuing review.
Source: Item 23 — RECEIPTS (FDD pages 67–327)
What This Means (2024 FDD)
According to Management Recruiters' 2024 Franchise Disclosure Document, either Management Recruiters as the franchisor, or the franchisee, can waive or reduce any obligation or restriction upon the other party. However, this waiver is only valid if it is documented in a signed written instrument.
The waiver becomes effective once the written instrument is delivered to the other party, or on another date if specified within the instrument itself. This means that the timing of the waiver can be controlled and documented, providing clarity for both parties.
It's important to note that any waiver does not negatively impact the waiving party's other rights and remains subject to continuing review. This implies that Management Recruiters or the franchisee can reassess the waiver's impact and potentially reinstate the original obligation in the future. This clause provides flexibility but also introduces a degree of uncertainty, as previously waived obligations could be revived.