If Aw sends a notice of nonrenewal, when must this notice be given before the expiration of the term of the agreement?
Aw Franchise · 2025 FDDAnswer from 2025 FDD Document
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
Source: Item 22 — CONTRACTS (FDD pages 39–40)
What This Means (2025 FDD)
According to Aw's 2025 Franchise Disclosure Document, if Aw decides not to renew a franchise agreement, they must provide the franchisee with a written notice of nonrenewal at least six months before the agreement's expiration date. The notice must include the reasons for Aw's decision to not renew the franchise agreement.
This requirement ensures that franchisees have adequate time to prepare for the end of their franchise term, whether by seeking a new business opportunity or negotiating alternative arrangements. It also allows the franchisee time to address any deficiencies if Aw provides an opportunity to correct them.
If Aw fails to provide a deficiency notice within 60 days after receiving the franchisee's renewal notice, or if Aw does not provide the non-renewal notice at least six months before the agreement expires, Aw may extend the agreement to allow the franchisee reasonable time to correct deficiencies or to provide the required six-month non-renewal notice. This clause protects the franchisee from abrupt non-renewal decisions without proper notice.