Is Aw required to provide a reason when revoking a waiver?
Aw Franchise · 2025 FDDAnswer from 2025 FDD Document
- 19.3 Waiver of Obligations. Either you or the Company may, by written instrument, unilaterally waive or reduce any obligation of or restriction upon the other under this Agreement, effective upon delivery of written notice thereof to the other or such other effective date stated in the notice of waiver. Any waiver granted by us will be without prejudice to any other rights we may have, will be subject to our continuing review, and may be revoked, in our sole discretion, at any time and for any reason, effective upon delivery to you of ten (10) days prior written notice.
Source: Item 22 — CONTRACTS (FDD pages 39–40)
What This Means (2025 FDD)
According to Aw's 2025 Franchise Disclosure Document, Aw has the discretion to revoke a waiver at any time and for any reason. The waiver becomes effective upon delivery of ten days prior written notice to the franchisee. This means that Aw is not obligated to provide a specific justification or explanation when revoking a waiver.
For a prospective Aw franchisee, this implies that any waiver granted by Aw can be withdrawn without a stated cause. The franchisee must be prepared for the possibility that a previously granted waiver may be revoked, requiring them to adhere strictly to the original terms of the franchise agreement. This clause provides Aw with significant flexibility in enforcing the franchise agreement and managing its network of franchisees.
This level of franchisor discretion is not uncommon in franchising, as it allows the franchisor to maintain brand standards and operational consistency. However, it also places a degree of uncertainty on the franchisee, who must factor in the potential for waivers to be revoked when making business decisions. It would be prudent for a potential Aw franchisee to seek legal counsel to fully understand the implications of this clause and to discuss potential scenarios with existing franchisees during their due diligence.