Can the advertising fees in the renewal agreement for an Aw franchise differ from the initial agreement?

According to Aw's 2025 Franchise Disclosure Document, the advertising fees in the renewal agreement can differ from the initial agreement. To renew the franchise, the franchisee must sign the then-current form of standard franchise agreement, which will replace the original agreement in all respects. This new agreement may contain different royalty fees, advertising fees, and other fees and provisions than the original agreement.

This means that when an Aw franchisee renews their franchise agreement, they should carefully review the new agreement, as the terms, including advertising fees, could be different. The franchisee needs to be prepared for potential changes in these fees, which could impact their overall costs and profitability. It is important to note that the franchisee must also sign any ancillary agreements that Aw is then customarily using for renewals.

Furthermore, the franchisee is required to provide a general release of any and all claims against Aw and its affiliates. If the franchisee or any of their owners refuse to sign the new agreements and releases within thirty days of delivery, they will be deemed to have elected not to renew the franchise. This underscores the importance of thoroughly understanding and agreeing to the new terms before proceeding with the renewal.

In summary, Aw franchisees need to be aware that the renewal agreement is not simply an extension of the original agreement. It is a completely new agreement that can have different terms, including advertising fees. Franchisees should carefully evaluate these changes and seek legal counsel if needed to ensure they fully understand the implications of the renewal agreement.