factual

What is the minimum notice Aw must give a franchisee if they decide not to renew the franchise?

Aw Franchise · 2025 FDD

Answer from 2025 FDD Document

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 the six (6) month non-renewal notice required under this Agreement.

Source: Item 22 — CONTRACTS (FDD pages 39–40)

What This Means (2025 FDD)

According to Aw's 2025 Franchise Disclosure Document, Aw must provide a minimum of six months' notice if they decide not to renew a franchise agreement. Specifically, if Aw does not provide a deficiency notice within 60 days of receiving the franchisee's renewal notice, they must give notice of their decision not to renew the franchise at least six months before the agreement's expiration.

This six-month notice period allows the franchisee time to prepare for the end of their franchise term. This includes making arrangements for the business location, settling any outstanding financial obligations, and discontinuing the use of Aw's trademarks and branding. The franchisee also has time to consider their options, such as selling the business (subject to Aw's right of first refusal) or starting an independent venture.

If Aw fails to provide either the deficiency notice within 60 days of the franchisee's renewal notice or the non-renewal notice at least six months before the expiration of the agreement, Aw may extend the term of the agreement. This extension ensures the franchisee has reasonable time to address any deficiencies or to receive the required six-month non-renewal notice, protecting the franchisee from abrupt termination without adequate warning.

It is important for prospective Aw franchisees to understand these renewal and non-renewal terms, as they significantly impact the franchisee's ability to continue operating under the Aw brand. Franchisees should also be aware of their obligations upon termination or expiration, including the discontinuation of using Aw's intellectual property and the payment of any outstanding fees.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.