Is failure to satisfactorily complete initial training a non-curable default for the Aw franchise?
Aw Franchise · 2025 FDDAnswer from 2025 FDD Document
| PROVISION | SECTION | SUMMARY |
|---|---|---|
| IN FRANCHISE AGREEMENT | ||
| h. "Cause" defined – non-curable defaults | Section 15.1 | Failure to locate site or open Papa Ray's Pizza Restaurant in time required, failure to satisfactorily complete initial training, abandonment, cease operating for 2 or more days, material misrepresentations, conviction of a felony, dishonest or unethical conduct, unauthorized transfers, unauthorized use or disclosure of confidential information or Operations Manual, unauthorized use of Marks, having interest in competing business, creation of a threat to public health or safety not corrected within 24 hours, 3 or more defaults in any 12 month period, failure to attend training or conference 2 or more times, filing for bankruptcy relief. |
Source: Item 17 — RENEWAL, TERMINATION, TRANSFER, AND DISPUTE RESOLUTION (FDD pages 34–36)
What This Means (2025 FDD)
According to Aw's 2025 Franchise Disclosure Document, failure to satisfactorily complete initial training is defined as a non-curable default. This information is detailed within Item 17, which outlines the terms for renewal, termination, transfer, and dispute resolution of the franchise agreement.
Specifically, the FDD states that if a franchisee fails to satisfactorily complete the initial training program, Aw has grounds to terminate the franchise agreement without providing an opportunity for the franchisee to correct the deficiency. This is a significant point for potential franchisees to consider, as it underscores the importance of fully engaging with and successfully completing the initial training program.
This type of clause is not uncommon in franchise agreements, as franchisors want to ensure that franchisees are adequately prepared to operate the business according to the franchisor's standards. However, the implications can be severe, as it could lead to immediate termination without recourse if the training is not completed to Aw's satisfaction. Therefore, prospective franchisees should carefully evaluate the requirements and expectations of the initial training program and assess their ability to meet them.