Does the Aw addendum for Illinois alter the requirement for the franchisee to commence doing business before the initial franchise fee is due?

According to Aw's 2025 Franchise Disclosure Document, the addendum for Illinois modifies the initial franchise fee payment schedule. Specifically, the addendum stipulates that the payment of the initial franchise fee will be deferred until Aw has fulfilled its initial obligations to the franchisee and the franchisee has commenced business operations. This change is a direct result of a requirement imposed by the Office of the Illinois Attorney General due to Aw's financial condition.

This modification means that prospective Aw franchisees in Illinois will not be required to pay the initial franchise fee upfront. Instead, the fee is deferred until Aw has met its obligations as outlined in the franchise agreement, and the franchisee has started running their Aw business. This provides a level of financial assurance to the franchisee, as they are not paying the fee until the franchisor has demonstrated its commitment and the business is operational.

This requirement offers a significant benefit to franchisees in Illinois, reducing their initial financial risk. It ensures that Aw is incentivized to provide the necessary support and fulfill its obligations before receiving the franchise fee. Franchisees should carefully review the franchise agreement and the Illinois addendum to understand the specific obligations Aw must meet before the initial franchise fee becomes due.