In franchising franchisors can end up spending huge monies on attorney fees and worse off find them selves simultaneously fighting legal battles in multiple jurisdictions over often frivolous lawsuits brought on by non-performing franchisees and their professional parasites.After watching other franchisors become legally embattled it became apparent to me that our company needed a hedge in this issue. Although we never had this problem I witnessed other franchise get off their game and lose focus on the market and their companies. So, I decided to add this clause to our franchise agreements;
7. MISCELLANEOUS7.1 Governing LawThis Agreement has been accepted and made in the State of ________, United States and all rights hereunder will be governed by and interpreted under the internal laws (and not the law of conflict of laws) of the State of Arizona.7.3 WaiverA waiver of any default or breach of any provision, term, covenant, or condition of this
Franchise Agreement will not be a waiver of any subsequent breach of the same or any
other provision, term, covenant, or condition.Any waiver of any provision of this Agreement must be set forth in writing and signed by the party granting the waiver. Any waiver Franchisor grants will not prejudice any other rights Franchisor may have, and will be subject to Franchisor’s continuing review. Franchisor may revoke any waiver, in its sole discretion, at any time and for any reason, effective upon delivery to Franchisee of ten (10) days prior written notice of revocation.By written notice, Franchisor unilaterally may waive any obligation of Franchisee, their principals, or the guarantors.
Our consent, whenever required, may be arbitrarily withheld if Franchisee are in default under this Franchise Agreement.——— ———— ———–If you are a franchisor perhaps you should run this by your attorney [professional over billing parasite-opinion] to see if such a concept would be right for you. Often these clauses are not allowed in many jurisdictions, but if you’re a dealing with International Interests or regions in country where such clauses are allowed it might be something to ask your lawyer about, who knows? Consider all this in 2006.