Does Aw need to provide notice to the franchisee before terminating the agreement for failing to comply with standards?
Aw Franchise · 2025 FDDAnswer from 2025 FDD Document
nsent to the termination or expiration of this Agreement, or any other relief which we may seek in a complaint to lift the provisions of any automatic stay under any bankruptcy rules. In addition, you (and your Owners) agree not to seek any injunctive relief from any court in any jurisdiction which would have the effect of staying or enjoining this provision.
- 15.2 By the Company With Opportunity to Cure. We have the right to terminate this Agreement upon written notice to you if you (or any of your Owners):
- (a) fail to accurately report the Gross Revenue of your Papa Ray's Pizza Restaurant or to timely pay royalty fees, marketing fund contributions, or other payments due to us or our affiliates, and do not correct such failure within ten (10) days after written notice of such failure is delivered to you;
- (b) commit any act or omission of default under the lease for the Premises and do not cure the default within the applicable cure period set forth in the lease;
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 and an opportunity to cure before terminating a franchise agreement for failure to comply with standards, with some exceptions. Specifically, if a franchisee fails to comply with any provision of the agreement, mandatory specification, standard, or operating procedure, Aw will provide written notice, and the franchisee has 30 days to correct the failure.
If the breach cannot be reasonably cured within 30 days, Aw will allow a reasonable amount of time to complete the cure, provided the franchisee commences a bona fide program to cure the breach within 30 days and continues to take necessary actions to complete the cure. However, if the franchisee fails to continue the necessary action or does not complete the cure within a reasonable period, Aw may terminate the agreement upon written notice.
However, Aw can terminate the agreement without notice if the franchisee presents a bankruptcy petition or if a bankruptcy petition is filed against them and not dismissed within 60 days. Additionally, if the franchisee violates anti-terrorism laws or blocks assets under those laws, Aw can terminate the agreement immediately.