Does Aw have the right to refuse any request from the franchisee?
Aw Franchise · 2025 FDDAnswer from 2025 FDD Document
19.4 Approvals and Consent. Whenever this Agreement requires our prior approval or consent, you must make a timely written request for it. Our approval or consent will not be valid unless it is in writing. .....Except where this Agreement expressly obligates us to reasonably approve or not unreasonably withhold our approval of any of your actions or requests, we have the absolute right to refuse any request by you or to withhold our approval of any action or omission by you. We make no warranties or guaranties upon which you may rely, and we assume no liability or obligation to you, by virtue of granting any waiver, approval or consent, or by reason of any neglect, delay or denial of any request for a waiver, approval or consent.
Source: Item 22 — CONTRACTS (FDD pages 39–40)
What This Means (2025 FDD)
According to Aw's 2025 Franchise Disclosure Document, Aw retains considerable discretion regarding franchisee requests. Except where the franchise agreement explicitly requires Aw to reasonably approve or not unreasonably withhold approval, Aw has the absolute right to refuse any request from a franchisee or to withhold approval of any action or omission by the franchisee. This clause emphasizes that Aw is not obligated to grant franchisee requests unless explicitly stated in the agreement.
This provision means that franchisees should carefully review the franchise agreement to understand which decisions require Aw's approval and whether Aw's approval is subject to a reasonableness standard. For requests that are not covered by such a standard, Aw has the right to deny the request for any reason or no reason at all. This could impact various aspects of the franchise operation, from marketing initiatives to supplier choices, if not explicitly covered in the agreement.
The FDD also states that Aw makes no warranties or guarantees and assumes no liability by granting any waiver, approval, or consent, or by neglecting, delaying, or denying any request for a waiver, approval, or consent. This further protects Aw from any claims arising from their decisions on franchisee requests. Prospective franchisees should consider the implications of this broad discretionary power and assess how it might affect their ability to operate their Aw franchise independently and adapt to local market conditions.