Is reliance on the truthfulness of information provided by the franchisee a condition of the Aw franchise agreement?
Aw Franchise · 2025 FDDAnswer from 2025 FDD Document
- 20.3 You affirm that all information you have given to us in any and all applications, financial statements and other submissions is true, complete and accurate in all respects, with you
expressly acknowledging that we are relying upon the truthfulness, completeness and accuracy of such information.
Source: Item 22 — CONTRACTS (FDD pages 39–40)
What This Means (2025 FDD)
According to the 2025 Aw Franchise Disclosure Document, the franchise agreement explicitly states that Aw relies on the truthfulness, completeness, and accuracy of the information provided by the franchisee in their applications, financial statements, and other submissions. This acknowledgement is a condition of the franchise agreement.
This means that Aw franchisees are legally affirming that all information provided to Aw during the application process is accurate. If the information provided is later found to be false or misleading, Aw could potentially take legal action against the franchisee for breach of contract or fraud. This clause protects Aw from making business decisions based on inaccurate information provided by potential franchisees.
However, the FDD also includes provisions that protect franchisees. Specifically, no statement or questionnaire signed by the franchisee can waive claims under state franchise law, including fraud in the inducement, or disclaim reliance on statements made by Aw. This ensures that franchisees retain their legal rights and recourse in case of misrepresentation by the franchisor. Furthermore, in Illinois, any condition that binds the franchisee to waive compliance with the Illinois Franchise Disclosure Act is void.