What is the consequence if an Aw franchisee fails to comply with any standard?
Aw Franchise · 2025 FDDAnswer from 2025 FDD Document
nsent to the termination or expiration of this Agreement, or any other relief which we may seek in a complaint to lift the provisions of any automatic stay under any bankruptcy rules. In addition, you (and your Owners) agree not to seek any injunctive relief from any court in any jurisdiction which would have the effect of staying or enjoining this provision.
- 15.2 By the Company With Opportunity to Cure. We have the right to terminate this Agreement upon written notice to you if you (or any of your Owners):
- (a) fail to accurately report the Gross Revenue of your Papa Ray's Pizza Restaurant or to timely pay royalty fees, marketing fund contributions, or other payments due to us or our affiliates, and do not correct such failure within ten (10) days after written notice of such failure is delivered to you;
- (b) commit any act or omission of default under the lease for the Premises and do not cure the default within the applicable cure period set forth in the lease;
Source: Item 22 — CONTRACTS (FDD pages 39–40)
What This Means (2025 FDD)
According to Aw's 2025 Franchise Disclosure Document, if a franchisee fails to comply with any provision of the agreement or any mandatory specification, standard, or operating procedure, Aw can terminate the agreement, provided the franchisee is given an opportunity to correct the failure. Aw must provide written notice of the failure, and the franchisee typically has 30 days to correct it.
However, if the breach cannot be reasonably cured within 30 days, and the franchisee begins a bona fide program to cure the breach within 30 days and continues to take necessary actions to complete the cure, Aw will allow a reasonable amount of time to complete the cure. If the franchisee fails to continue the necessary action or does not complete the cure within a reasonable period, Aw can terminate the agreement with written notice.
It is important for prospective Aw franchisees to understand the specific standards and operating procedures outlined in the franchise agreement and operations manual. Franchisees should also maintain open communication with Aw to address any potential compliance issues promptly and ensure they are following the proper steps to rectify any failures within the given timeframes. This proactive approach can help avoid potential termination of the franchise agreement.