Does the lessor have to give Aw written notice concurrently with the franchisee of any default?
Aw Franchise · 2025 FDDAnswer from 2025 FDD Document
At our option, we may require that the lease: (i) have a term, with initial and renewal terms, at least equal to the initial term of this Agreement; (ii) be collaterally assigned to us (with the consent of the lessor, if required), by execution of the Collateral Assignment of Lease attached hereto as Exhibit 3 (the assignment may be exercised only upon your default under the lease or this Agreement or the expiration or termination of this Agreement); (iii) provides that the lessor shall give written notice to us (concurrently with you) of any default by you under the lease, and will give us an additional fifteen (15) days to cure any default not cured by you during the cure period and assign the lease to us if defaults are cured by us; (iv) permits the use on the Premises of all signs required by the us for Papa Ray's Pizza Restaurants, subject to applicable local laws, codes and ordinances; (v) provides that on expiration or termination of your Franchise Agreement, we may enter the leased
Source: Item 22 — CONTRACTS (FDD pages 39–40)
What This Means (2025 FDD)
According to Aw's 2025 Franchise Disclosure Document, the lease agreement may require the lessor to provide Aw with written notice concurrently with the franchisee regarding any default by the franchisee under the lease. Specifically, Aw may require that the lease includes a provision stating that the lessor must give written notice to Aw at the same time they notify the franchisee of any default.
This provision is not mandatory in every lease but is at Aw's option. If Aw requires this provision, the lessor must also provide Aw with an additional fifteen (15) days to cure any default that the franchisee has not addressed within the original cure period. Furthermore, if Aw cures the default, the lease can be assigned to them.
This requirement protects Aw's interest in maintaining the franchise location and brand standards. By receiving concurrent notice of default, Aw has the opportunity to intervene and rectify the situation, potentially preventing lease termination and ensuring the continued operation of the Aw franchise. This clause also allows Aw to take over the lease if they cure the default, giving them control over the location if the franchisee is unable to meet their obligations. Prospective franchisees should understand that Aw has the option to enforce these lease terms to safeguard their investment and operational consistency.