According to the Aw franchise agreement, can Aw revoke a waiver at any time?
Aw Franchise · 2025 FDDAnswer from 2025 FDD Document
- 19.3 Waiver of Obligations. Either you or the Company may, by written instrument, unilaterally waive or reduce any obligation of or restriction upon the other under this Agreement, effective upon delivery of written notice thereof to the other or such other effective date stated in the notice of waiver. Any waiver granted by us will be without prejudice to any other rights we may have, will be subject to our continuing review, and may be revoked, in our sole discretion, at any time and for any reason, effective upon delivery to you of ten (10) days prior written notice.
Source: Item 22 — CONTRACTS (FDD pages 39–40)
What This Means (2025 FDD)
According to the 2025 FDD, Aw has the right to revoke any waiver it grants to a franchisee. This means that even if Aw initially waives a specific requirement or obligation outlined in the franchise agreement, it retains the power to reinstate that requirement later.
Aw must provide the franchisee with ten days' prior written notice before the revocation becomes effective. This allows the franchisee a short period to prepare for compliance with the previously waived obligation. The ability to revoke a waiver applies at any time, for any reason, at Aw's sole discretion.
This clause gives Aw significant flexibility in managing the franchise relationship and ensuring brand standards are maintained. However, it also introduces an element of uncertainty for the franchisee, who must be prepared to comply with previously waived requirements on short notice. Franchisees should carefully consider this provision and its potential impact on their business operations.
While waivers can provide temporary relief or flexibility, franchisees need to understand that these are not permanent concessions. It is important to maintain open communication with Aw to understand the circumstances under which a waiver might be revoked and to proactively address any potential issues that could lead to revocation.