Does Spray Net's failure to insist on strict compliance with the Guaranty constitute a waiver?
Spray_Net Franchise · 2025 FDDAnswer from 2025 FDD Document
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- Nonwaiver. Franchisor's failure to insist upon strict compliance with any provision of this Guaranty shall not be a waiver of our right to do so, any law, custom, usage or rule to the contrary notwithstanding.
Delay or omission by us respecting any breach or default shall not affect Franchisor's rights respecting any subsequent breaches or defaults.
All rights and remedies granted in this Guaranty shall be cumulative.
Source: Item 23 — RECEIPTS (FDD pages 75–219)
What This Means (2025 FDD)
According to Spray Net's 2025 Franchise Disclosure Document, the franchisor's failure to demand strict adherence to any provision within the Personal Guaranty does not result in a relinquishment of their right to enforce it later. This is explicitly stated under the 'Nonwaiver' clause. This condition remains valid irrespective of any laws, customs, established practices, or regulations that might suggest otherwise.
Furthermore, any delay or failure on Spray Net's part to act upon a breach or default by the franchisee does not impact their rights regarding subsequent breaches or defaults. The rights and remedies outlined in the Guaranty are cumulative, meaning Spray Net can pursue multiple avenues of recourse simultaneously.
This nonwaiver provision is a standard clause in franchise agreements, protecting the franchisor's ability to enforce the agreement's terms even if they haven't always done so in the past. For a Spray Net franchisee, this means they cannot assume that leniency in one instance will excuse future non-compliance. Franchisees must consistently adhere to all terms of the Personal Guaranty and the Franchise Agreement.