What information will Aw include in a notice of nonrenewal?
Aw Franchise · 2025 FDDAnswer from 2025 FDD Document
If we send a notice of nonrenewal it will state the reasons for our refusal to renew.
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, the notice of nonrenewal will include the reasons for the refusal to renew the franchise. This means Aw must provide a clear explanation to the franchisee regarding why the renewal is being denied.
For a prospective Aw franchisee, this is important because it provides some transparency in the non-renewal process. Knowing the reasons for non-renewal can help a franchisee understand what issues need to be addressed during the franchise term to improve their chances of renewal. It also allows the franchisee to assess whether the non-renewal is based on legitimate concerns or if there might be grounds for disputing the decision.
However, the FDD excerpt does not specify the level of detail Aw must provide in the notice. The reasons could be very general (e.g., "failure to meet brand standards") or more specific (e.g., "repeated violations of cleanliness standards as documented in inspection reports dated X, Y, and Z"). A prospective franchisee should seek clarification from Aw regarding the typical level of detail provided in a non-renewal notice to fully understand their rights and obligations.