What happens if an Aw franchisee has deficiencies in their operation that could cause non-renewal?
Aw Franchise · 2025 FDDAnswer from 2025 FDD Document
Within sixty (60) days of our receipt of your notice, we agree to give you written notice of any deficiencies in your operation or historical performance of the Papa Ray's Pizza Restaurant which could cause us not to renew the Franchise.
Our notice will state what actions, if any, you must take to correct the deficiencies in your operation of the Papa Ray's Pizza Restaurant or of the Premises and will specify the time period in which those deficiencies must be corrected.
Renewal of the Franchise will be conditioned on your continued compliance with all the terms and conditions of this Agreement up to the date of expiration.
If we send a notice of nonrenewal it will state the reasons for our refusal to renew.
If we do not give you a deficiency notice within sixty (60) days after receipt of your renewal notice, or if we do not give you notice of our decision not to renew the Franchise six (6) months before the expiration of the term of this Agreement, we may extend the term of this Agreement for any period of time necessary in order to provide you reasonable time to cure the deficiencies or to provide the six (6) month non-renewal notice required under this Agreement.
Source: Item 22 — CONTRACTS (FDD pages 39–40)
What This Means (2025 FDD)
According to Aw's 2025 Franchise Disclosure Document, if a franchisee has operational deficiencies that could lead to non-renewal, Aw will provide written notice of these deficiencies within 60 days of receiving the franchisee's notice of election to renew, which must be given at least nine months before the end of the current agreement term. This notice will detail the actions needed to correct these deficiencies and specify the timeframe for correction.
The renewal of the Aw franchise is contingent upon the franchisee's continued compliance with all terms and conditions of the franchise agreement up to the expiration date. If Aw decides not to renew the franchise, they will send a notice of nonrenewal stating the reasons for the refusal.
Furthermore, if Aw fails to provide a deficiency notice within 60 days of receiving the renewal notice or fails to provide a non-renewal notice six months before the agreement's expiration, Aw may extend the agreement term to allow the franchisee reasonable time to correct deficiencies or to provide the required six-month non-renewal notice. This ensures that Aw provides adequate opportunity for the franchisee to address any issues before a final decision on renewal is made.