How long does Aw have to provide written notice of any deficiencies in the franchisee's operation that could cause non-renewal?
Aw Franchise · 2025 FDDAnswer from 2025 FDD Document
We will charge you a renewal fee of Two Thousand Five Hundred Dollars ($2,500.00) for services we render to you and expenses we incur in conjunction with the renewal.
- 3.2 Notice of Renewal and Nonrenewal. You must give us written notice of your election to exercise your option to renew at least nine (9) months before the end of the term of this Agreement. Within sixty (60) days of our receipt of your notice, we agree to give you written notice of any deficiencies in your operation or historical performance of the Papa Ray's Pizza Restaurant which could cause us not to renew the Franchise. Our notice will state what actions, if any, you must take to correct the deficiencies in your operation of the Papa Ray's Pizza Restaurant or of the Premises and will specify the time period in which those deficiencies must be corrected. Renewal of the Franchise will be 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.
Source: Item 22 — CONTRACTS (FDD pages 39–40)
What This Means (2025 FDD)
According to Aw's 2025 Franchise Disclosure Document, Aw must provide written notice of any operational deficiencies that could lead to non-renewal within 60 days of receiving the franchisee's notice of election to renew. This notice must specify the actions needed to correct these deficiencies and the timeframe for correction.
This means that if a franchisee wants to renew their agreement, they need to notify Aw at least nine months before the end of their current term. Aw then has a 60-day window to assess the franchisee's performance and identify any areas needing improvement. This allows the franchisee time to address these issues and potentially secure a renewal.
If Aw fails to provide a deficiency notice within this 60-day period or does not provide a non-renewal notice six months before the agreement's expiration, Aw may extend the agreement to allow the franchisee time to correct deficiencies or to provide the required six-month non-renewal notice. This clause protects the franchisee by ensuring they have adequate time to rectify any issues identified by Aw.
It is important for prospective franchisees to understand these timelines and requirements, as failure to adhere to them could impact their ability to renew their franchise agreement. Franchisees should maintain open communication with Aw and promptly address any concerns raised to ensure a smooth renewal process.