Does Monicals Pizza's acceptance of payments after a breach by the franchisee constitute a waiver of that breach?

According to the 2025 Monicals Pizza Franchise Disclosure Document, the subsequent acceptance of any payment due to Monicals Pizza does not constitute a waiver of any breach of the franchise agreement's terms, covenants, or conditions by the franchisee. This means that even if Monicals Pizza continues to accept payments from a franchisee who has violated the franchise agreement, Monicals Pizza still retains the right to take action regarding the breach.

This clause protects Monicals Pizza by ensuring that they do not inadvertently forfeit their rights to address a franchisee's violation simply by continuing to accept payments. It allows Monicals Pizza to continue receiving revenue while they assess the situation and decide on the appropriate course of action regarding the breach.

For a prospective Monicals Pizza franchisee, this means that even if Monicals Pizza accepts payments after a breach, the franchisee is still liable for the violation and subject to potential penalties or termination of the agreement. Franchisees should not assume that continued acceptance of payments implies forgiveness or condoning of any breach on their part. It is crucial to adhere to all terms and conditions of the franchise agreement to avoid any potential issues, regardless of whether payments are accepted.