Does the imposition of fines waive Marble Slab Creamery's right to require strict compliance?
Marble_Slab_Creamery Franchise · 2025 FDDAnswer from 2025 FDD Document
18.3 No failure of Franchisor to exercise any power reserved to it in this Agreement, or to insist upon compliance by Franchisee with any obligation or condition in this Agreement, and no custom or practice of the parties at variance with the terms hereof, will constitute a waiver of Franchisor's rights to demand exact compliance with any of the terms of this Agreement. Waiver by Franchisor of any particular default will not affect or impair Franchisor's right with respect to any subsequent default of the same or of a different nature; nor will any delay, forbearance, or omission of Franchisor to exercise any power or right arising out of any breach or default by Franchisee of any of the terms, provisions, or covenants of this Agreement affect or impair Franchisor's rights; nor will such constitute a waiver by Franchisor of any rights hereunder or rights to declare any subsequent breach or default.
Source: Item 22 — CONTRACTS (FDD page 101)
What This Means (2025 FDD)
According to Marble Slab Creamery's 2025 Franchise Disclosure Document, Marble Slab Creamery's failure to exercise any power or insist on compliance by the franchisee does not constitute a waiver of its rights to demand exact compliance with the terms of the Franchise Agreement. This means that even if Marble Slab Creamery does not strictly enforce every single requirement at all times, it still retains the right to demand full compliance in the future.
Furthermore, the FDD states that a waiver by Marble Slab Creamery of any particular default does not affect its right with respect to any subsequent default, whether it's the same type of default or a different one. So, if Marble Slab Creamery overlooks a franchisee's failure to meet a certain standard once, it doesn't mean they can't enforce that standard, or any other, later on.
Additionally, any delay, forbearance, or omission by Marble Slab Creamery to exercise any power or right arising from a breach or default by the franchisee does not affect or impair Marble Slab Creamery's rights. This reinforces the idea that Marble Slab Creamery's inaction in response to a franchisee's violation of the agreement does not constitute a waiver of its rights or a right to declare any subsequent breach or default. This type of clause is common in franchise agreements to protect the franchisor's ability to enforce standards consistently across the franchise system.