What are the consequences if an Aw franchisee does not complete the cure within the reasonable period allowed?
Aw Franchise · 2025 FDDAnswer from 2025 FDD Document
under the lease for the Premises and do not cure the default within the applicable cure period set forth in the lease;
- (c) fails to meet the minimum Gross Revenue requirement described in Section 2.7 above following notice and a twelve (12) month period in which to increase the Gross Revenue in order to meet the required minimum Gross Revenue requirement; or
- (d) fail to comply with any other provision of this Agreement or any mandatory specification, standard or operating procedure we prescribe from time to time, and do not correct such failure within thirty (30) days after written notice of such failure to comply is delivered to you. If such breach cannot be reasonably be cured within such thirty (30) day period and if you commence a bona fide program to cure such breach within thirty (30) days and continue to take such actions as are necessary to complete such cure until completed, you will be given the reasonable amount of time required to complete the cure.
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 correct a breach of the franchise agreement within the initial cure period (typically 30 days for most violations), but has started a bona fide program to cure the breach, Aw may grant a 'reasonable amount of time' to complete the cure. However, if the franchisee fails to continue taking the necessary actions to complete the cure, or does not complete the cure within that reasonable extended period, Aw has the right to terminate the franchise agreement. Aw can deliver a written notice stating the breach was not cured in a reasonable time and that they are electing to terminate the agreement.
This means that Aw franchisees must diligently pursue curing any breach of the franchise agreement. Failure to do so, even after an initial attempt to cure, can lead to the termination of the franchise agreement. Franchisees should document all efforts to cure any breach to demonstrate their commitment to compliance.
This termination clause highlights the importance of maintaining compliance with all aspects of the franchise agreement. Franchisees should pay close attention to any notices of breach and act promptly to address the issues. If a cure cannot be completed within the initial timeframe, franchisees should communicate with Aw and demonstrate a clear plan and ongoing effort to resolve the breach to avoid potential termination.