What is the condition regarding continued compliance with the terms of the agreement for Aw franchise renewal?

According to Aw's 2025 Franchise Disclosure Document, a franchisee's ability to renew their franchise agreement is contingent upon their adherence to the existing agreement's terms and conditions up to the point of expiration. This means that throughout the initial term of the franchise, the franchisee must consistently meet all obligations and standards set forth by Aw.

This condition ensures that only franchisees who have maintained a satisfactory level of compliance and operational performance are granted the opportunity to continue operating under the Aw brand. For a prospective franchisee, this highlights the importance of understanding and diligently following all requirements outlined in the franchise agreement from the outset. Failure to comply with these terms could jeopardize the possibility of renewal, impacting the long-term viability of the franchise.

Aw also specifies that they will provide written notice of any deficiencies in the franchisee's operation or historical performance that could lead to non-renewal. This notice will be given within sixty days of receiving the franchisee's renewal notice and will outline the necessary actions to correct these deficiencies, along with a specified timeframe for correction. This provides an opportunity for franchisees to rectify any issues and improve their compliance before the renewal decision is finalized.

In addition to compliance, Aw requires the franchisee and their owners to sign the then-current form of standard franchise agreement, ancillary agreements, and a general release of claims. The new franchise agreement may contain different royalty fees, advertising fees, and other provisions. Refusal to sign these agreements and releases within thirty days after delivery will result in the franchisee being deemed to have elected not to renew the franchise.