What is Aw's obligation if they fail to provide timely deficiency or non-renewal notices?
Aw Franchise · 2025 FDDAnswer 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, if Aw fails to provide a deficiency notice within sixty days of receiving a renewal notice from the franchisee, or if Aw does not provide notice of non-renewal six months before the agreement's expiration, Aw may extend the franchise agreement. This extension would be for the time necessary to allow the franchisee reasonable time to correct any deficiencies or to provide the required six-month non-renewal notice.
In simpler terms, if Aw misses the deadlines for informing a franchisee about issues that could prevent renewal or for notifying them that their franchise will not be renewed, Aw must give the franchisee extra time to address the issues or provide the required notice. This protects the franchisee by ensuring they have adequate time to react to any concerns Aw has about their performance or to prepare for the end of their franchise term.
This clause ensures fairness in the renewal process, preventing Aw from abruptly denying renewal without giving the franchisee a chance to rectify any problems or receive adequate notice. It is important for prospective franchisees to understand these timelines and Aw's obligations to ensure they are afforded the full rights and opportunities for renewal as outlined in the franchise agreement.