What is considered a prohibited action that could lead to termination of the Aw franchise agreement?
Aw Franchise · 2025 FDDAnswer from 2025 FDD Document
- 15.1 By the Company Without Opportunity to Cure. You will be deemed to be in default and we may, at our option, terminate this Agreement and all rights granted by this Agreement, without affording you an opportunity to cure the default, effective immediately upon delivery of notice of termination to you, if you (or any of your Owners):
Source: Item 22 — CONTRACTS (FDD pages 39–40)
What This Means (2025 FDD)
According to Aw's 2025 Franchise Disclosure Document, several actions could lead to the termination of the franchise agreement without an opportunity to cure the default. These include actions by the franchisee or their owners.
Specifically, the FDD states that Aw can terminate the agreement immediately upon notice if the franchisee or their owners are in default. This means Aw does not have to give the franchisee a chance to fix the problem before ending the agreement.
This is a significant risk for prospective Aw franchisees. It is important to understand what constitutes a default under the agreement and to ensure compliance to avoid immediate termination. Franchisees should seek legal counsel to fully understand their obligations and potential pitfalls.