Under what circumstances is a waiver by Monicals Pizza of a franchisee's default considered binding?
Monicals_Pizza Franchise · 2025 FDDAnswer from 2025 FDD Document
No failure of Franchisor to exercise any power reserved to it hereunder, or to insist upon strict compliance by Developer with any obligation or condition hereunder, and no custom or practice of the parties in variance with the terms hereof, shall constitute a waiver of Franchisor's right to demand exact compliance with the terms of this Development Agreement. Waiver by Franchisor of any particular default by Developer shall not be binding unless in writing and executed by Franchisor and shall not affect nor impair Franchisor's right with respect to any subsequent default of the same or of a different nature. Subsequent acceptance by Franchisor of any payment(s) due shall not be deemed to be a waiver by Franchisor of any breach by Developer of any terms, covenants or conditions of this Development Agreement.
Source: Item 23 — RECEIPTS (FDD pages 46–257)
What This Means (2025 FDD)
According to the 2025 Monicals Pizza Franchise Disclosure Document, a waiver by Monicals Pizza of any particular default by a developer (franchisee) is only considered binding if it is put in writing and executed by Monicals Pizza. This means that any verbal agreements or implied waivers will not be legally binding on Monicals Pizza.
This provision protects Monicals Pizza from inadvertently waiving its rights due to informal communications or a failure to strictly enforce the franchise agreement in every instance. It ensures that any decision to overlook a franchisee's default is a deliberate and documented one.
For a prospective Monicals Pizza franchisee, this means it is crucial to obtain any waivers or modifications to the franchise agreement in writing and signed by an authorized representative of Monicals Pizza. Relying on verbal assurances or past practices could be risky, as Monicals Pizza retains the right to demand strict compliance with the agreement's terms unless a written waiver is in place. This is a fairly standard clause in franchise agreements, intended to provide clarity and prevent misunderstandings regarding the franchisor's enforcement rights.