What conditions must be met for modifications to the Aw Franchise Agreement to be valid?

According to Aw's 2025 Franchise Disclosure Document, modifications to the Franchise Agreement must be in writing and signed by both parties to be considered valid. This requirement ensures that any changes to the original agreement are formally documented and agreed upon by both Aw and the franchisee, preventing misunderstandings or disputes later on. However, the Operations Manual and Aw's standards and specifications are subject to change without requiring a signed modification.

This stipulation is a fairly standard practice in franchising. It protects both the franchisee and Aw by ensuring that the core contractual obligations are not altered informally. The written and signed requirement provides a clear record of any agreed-upon changes. Franchisees should pay close attention to any proposed modifications and seek legal counsel if needed to fully understand the implications.

It is important to note that while the Franchise Agreement itself requires written modifications, Aw retains the right to modify its Operations Manual and standards and specifications. Franchisees must stay informed of these changes, as they are binding even without a formal amendment to the Franchise Agreement. This allows Aw to adapt its system to changing market conditions and maintain brand standards, but it also places a responsibility on franchisees to remain compliant with the most current operational guidelines.

Prospective Aw franchisees should carefully review Sections 6.2 and 19.6 of the Franchise Agreement, as referenced in Item 17 of the FDD, to fully understand the scope and limitations of modifications. Understanding these provisions is crucial for managing the franchise relationship and ensuring compliance with the terms of the agreement.