If Aw grants a waiver, can it be revoked?
Aw Franchise · 2025 FDDAnswer from 2025 FDD Document
- 19.3 Waiver of Obligations. Either you or the Company may, by written instrument, unilaterally waive or reduce any obligation of or restriction upon the other under this Agreement, effective upon delivery of written notice thereof to the other or such other effective date stated in the notice of waiver. Any waiver granted by us will be without prejudice to any other rights we may have, will be subject to our continuing review, and may be revoked, in our sole discretion, at any time and for any reason, effective upon delivery to you of ten (10) days prior written notice.
Source: Item 22 — CONTRACTS (FDD pages 39–40)
What This Means (2025 FDD)
According to Aw's 2025 Franchise Disclosure Document, Aw has the right to revoke any waiver it grants to a franchisee. The waiver must be provided in writing, but Aw retains the right to reverse the waiver at any time, for any reason. To revoke a waiver, Aw must provide the franchisee with ten days' prior written notice.
This clause gives Aw significant flexibility in managing its franchise agreements. It means that even if Aw initially agrees to relax a certain requirement or obligation for a franchisee, it can later reinstate that requirement with only ten days' notice. This could impact a franchisee's operations if they have made business decisions based on the waiver.
For a prospective Aw franchisee, this highlights the importance of carefully considering all aspects of the franchise agreement and understanding that any waivers granted are not permanent. It would be prudent to discuss the circumstances under which waivers might be granted and revoked with existing franchisees during the due diligence process. Franchisees should also evaluate how a potential revocation of a waiver could impact their business operations and financial projections.