To what extent are Aw franchisees bound by modifications to specifications, standards, or operating procedures due to lawful requirements under the franchise agreement?
Aw Franchise · 2025 FDDAnswer from 2025 FDD Document
If any lawful requirement or court order of any jurisdiction: (1) requires a greater advance notice of the termination or non-renewal of this Agreement than is required under this Agreement, or the taking of some other action which is not required by this Agreement; or (2) makes any provision of this Agreement or any specification, standard or operating procedure we prescribed invalid or unenforceable, the advance notice and/or other action required or revision of the specification, standard or operating procedure will be substituted for the comparable provisions of this Agreement in order to make the modified provision enforceable to the greatest extent possible. You agree to be bound by the modification to the greatest extent lawfully permitted. No modification will impact the operation of, or have any other effect upon, any other terms, provisions, and/or covenants of this Agreement.
Source: Item 22 — CONTRACTS (FDD pages 39–40)
What This Means (2025 FDD)
According to Aw's 2025 Franchise Disclosure Document, franchisees are bound by modifications to specifications, standards, or operating procedures if those changes are required by law or court order. Specifically, if any lawful requirement or court order makes a provision of the franchise agreement, or any specification, standard, or operating procedure invalid or unenforceable, then a revision will be substituted for the comparable provisions of the agreement. The franchisee agrees to be bound by these modifications to the greatest extent lawfully permitted.
This means that Aw can change its operating procedures, standards, and specifications to comply with legal requirements, and franchisees must adhere to these changes. This could include changes related to food safety, labor laws, or other regulations. The modifications will only extend so far as required to achieve enforceability under the law.
However, the franchise agreement also states that no modification will impact the operation of, or have any other effect upon, any other terms, provisions, and/or covenants of the agreement. This suggests that while Aw can make necessary changes to comply with laws, these changes should not fundamentally alter other aspects of the franchise agreement.