Can Aw require separate training for a franchisee's breach of the Annual Conference attendance provision?
Aw Franchise · 2025 FDDAnswer from 2025 FDD Document
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, Aw can require franchisees to attend separate training for failing to attend the Annual Conference. The FDD states that this separate training is in addition to any other rights and remedies available to Aw.
This means that if a franchisee or their required representatives (Principal Owner and/or Operating Manager) fail to attend the Annual Conference, Aw has the right to mandate additional training. The franchisee would likely bear the costs associated with this training, including tuition fees, travel, and accommodation.
This provision highlights the importance Aw places on franchisee participation in the Annual Conference. While franchisees are already obligated to pay the Annual Conference Registration Fee even if they don't attend, the added requirement of separate training serves as a further deterrent to non-attendance and underscores Aw's commitment to ensuring franchisees stay informed and engaged with the brand's developments and standards.