What happens if Aw does not provide a non-renewal notice 6 months before the expiration of the term?
Aw Franchise · 2025 FDDAnswer from 2025 FDD Document
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 Aw fails to provide a notice of their decision not to renew the franchise agreement six months before the agreement's expiration, Aw may extend the agreement's term. This extension would be for a period necessary to either allow the franchisee reasonable time to correct any deficiencies or to provide the six-month non-renewal notice as initially required.
This clause protects the franchisee by ensuring they have adequate time to address any operational issues that could lead to non-renewal. It also prevents Aw from abruptly ending the franchise agreement without proper notice. The franchisee is expected to maintain compliance with the franchise agreement terms up to the expiration date to be eligible for renewal.
For a prospective Aw franchisee, this means that Aw is obligated to provide sufficient notice if they do not intend to renew the franchise agreement, or grant an extension to allow for the notice period. This provision offers some security, ensuring the franchisee has time to react and potentially rectify any issues affecting the renewal decision. However, the ultimate decision to renew still rests with Aw, and the franchisee must meet all other renewal conditions.