Does Aw need to provide notice to the franchisee before terminating the agreement for failing to submit financial statements on time?
Aw Franchise · 2025 FDDAnswer from 2025 FDD Document
rom the construction, maintenance or operation of your Papa Ray's Pizza Restaurant and upon receipt of written or oral notice from us or governmental authority of the existence of such threat or danger, you fail to immediately cease any activity or conduct causing the threat or danger and fail to complete the cure of such breach within twenty-four (24) hours;
- (i) fail on three (3) or more separate occasions within any twelve (12) consecutive month period to submit when due financial statements, reports or other data, information or supporting records, to pay when due the royalty fees, marketing fund contributions, other payments due to us or to pay amounts due to other persons, or otherwise fail to comply with this Agreement, or with any mandatory specification, standard or operating procedures we prescribe from time to time, whether or not such failures to comply are corrected after notice of those failures to comply is delivered to you; and
(j) fail on two (2) or more occasions during any calendar year to attend and complete any mandatory supplemental education or conference required by Paragraph 5.3 or Paragraph 5.4 of this Agreement.
This Agreement will expire automatically without notice upon the presentation for filing by you (or any of your Owners) of a petition or application seeking any type of relief under the Federal Bankruptcy Act or any state insolvency or similar law.
Source: Item 22 — CONTRACTS (FDD pages 39–40)
What This Means (2025 FDD)
According to Aw's 2025 Franchise Disclosure Document, Aw may terminate the franchise agreement with written notice if the franchisee fails to accurately report gross revenue or timely pay royalties, marketing fund contributions, or other payments. However, the franchisee has ten days after receiving written notice to correct the failure.
Additionally, Aw can terminate the agreement if the franchisee fails to comply with any other provision of the agreement or mandatory specifications, standards, or operating procedures. In this case, the franchisee has thirty days after written notice to correct the failure. If the breach cannot be reasonably cured within thirty days, and the franchisee commences a program to cure the breach within thirty days and continues to take necessary actions to complete the cure, the franchisee will be given a reasonable amount of time to complete the cure. If the franchisee fails to continue the necessary action to cure 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 the opportunity to cure if the franchisee fails on three or more separate occasions within any twelve consecutive month period to submit when due financial statements, reports or other data, information or supporting records, to pay when due the royalty fees, marketing fund contributions, other payments due to Aw or to pay amounts due to other persons, or otherwise fail to comply with the Agreement, or with any mandatory specification, standard or operating procedures Aw prescribes from time to time, whether or not such failures to comply are corrected after notice of those failures to comply is delivered to you.