Is a waiver in the Management Recruiters Franchise Agreement prejudicial to the waiving party's other rights?
Management_Recruiters Franchise · 2024 FDDAnswer from 2024 FDD Document
hisee by Law under any promise or covenant contained within this Agreement, that results from reducing any provision, or specification, standard or operating procedure prescribed by Franchisor, or striking from any such provision, specification, standard or operating procedure, any portion(s) that a court of competent jurisdiction holds unenforceable, or orders to be unenforced, in a final
Source: Item 23 — RECEIPTS (FDD pages 67–327)
What This Means (2024 FDD)
According to Management Recruiters' 2024 Franchise Disclosure Document, any waiver of obligation or restriction must be documented in a signed written instrument to be effective. The FDD states that any such waiver by either Management Recruiters or the franchisee will not negatively impact the waiving party's other rights and remains subject to continuing review. This means that if either party chooses to waive a specific requirement or obligation, that waiver does not automatically forfeit any other rights they possess under the agreement.
This clause offers some protection to both the franchisor and franchisee. For example, if Management Recruiters waives a franchisee's obligation to meet a certain performance metric for a limited time, this waiver does not prevent Management Recruiters from enforcing other terms of the agreement or from reinstating the performance metric requirement in the future, subject to review. Similarly, if a franchisee waives a specific right, it doesn't mean they forfeit all other rights.
This type of non-prejudice clause is relatively common in franchise agreements, as it provides flexibility for both parties to address specific situations without broadly undermining their overall contractual rights. The inclusion of a "continuing review" provision suggests that waivers are not intended to be permanent alterations to the agreement but rather temporary adjustments subject to ongoing evaluation.