Can Aw require a franchisee to attend separate training for failing to attend the Annual Conference?
Aw Franchise · 2025 FDDAnswer from 2025 FDD Document
- 5.4 Annual Conference. Each year during the term of this Agreement, you, a Principal Owner and/or your Operating Manager must attend our Annual Conference for franchisees if we hold such a conference. We may charge you a fee to attend the conference ("Annual Conference Registration Fee"). In addition, you are responsible for all travel expenses incurred by you, your Owners and/or Operating Manager in attending the conference. This provision does not obligate us to hold an Annual Conference of franchisees each year. If an Annual Conference is not held, you are not obligated to pay the Annual Conference Registration Fee. If you fail to attend any Annual Conference during the term of this Agreement, you remain obligated to pay the Annual Conference Registration Fee. We may require you to attend separate training, in addition to any other rights and remedies available to us, for your breach of this provision.
Source: Item 22 — CONTRACTS (FDD pages 39–40)
What This Means (2025 FDD)
According to Aw's 2025 Franchise Disclosure Document, franchisees, a Principal Owner, and/or their Operating Manager must attend the Annual Conference each year if Aw holds one. Aw may charge a fee to attend the conference, and franchisees are responsible for all travel expenses incurred while attending. Even if a franchisee fails to attend the Annual Conference, they are still obligated to pay the Annual Conference Registration Fee.
Furthermore, Aw retains the right to mandate separate training for franchisees who breach the Annual Conference attendance provision. This is in addition to any other legal remedies Aw may pursue. This means that failure to attend the Annual Conference can result in both a financial penalty (the conference fee) and a mandatory training requirement.
This policy highlights the importance Aw places on franchisee participation in the Annual Conference. It serves as a means for Aw to ensure that franchisees stay informed about company updates, best practices, and any changes to the Aw system. By mandating both the conference fee and potential additional training, Aw reinforces the expectation that franchisees will actively engage with the brand and remain current with its operational standards.