What happens if an Aw franchisee defaults on their lease?
Aw Franchise · 2025 FDDAnswer from 2025 FDD Document
- 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):
- (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;
upon delivery to you of written notice that such breach has not been cured in a reasonable time and we are electing to terminate.
Source: Item 22 — CONTRACTS (FDD pages 39–40)
What This Means (2025 FDD)
According to Aw's 2025 Franchise Disclosure Document, if a franchisee commits an act or omission of default under their lease for the premises, Aw has the right to terminate the Franchise Agreement. However, the franchisee has an opportunity to cure the default within the applicable cure period set forth in the lease.
Specifically, Aw must provide written notice of the lease default, giving the franchisee a chance to correct the issue within the timeframe specified in their lease agreement. If the franchisee fails to cure the default within that period, Aw can then terminate the agreement by providing written notice that the breach remains uncured and that Aw is electing to terminate the agreement.
This emphasizes the importance of maintaining a good relationship with the landlord and adhering to all lease terms. Franchisees should carefully review their lease agreement and understand the cure periods for any potential defaults to avoid potential termination of their franchise agreement with Aw.