Can the royalty fees in the renewal agreement for an Aw franchise differ from the initial agreement?

According to Aw's 2025 Franchise Disclosure Document, the royalty fees in the renewal agreement can indeed differ from the initial agreement. To renew the franchise, the franchisee must sign the then-current form of standard franchise agreement. This new agreement will replace the original agreement and may include different royalty fees, advertising fees, and other provisions.

This means that when a franchisee renews their Aw franchise, they cannot assume that the financial terms will remain the same. The new agreement could require a higher or lower royalty fee, impacting the franchisee's profitability. Additionally, advertising fees and other costs could also change, affecting the overall financial obligations of the franchisee.

Prospective franchisees should carefully consider this aspect of the renewal process. It is essential to review the then-current form of the franchise agreement before deciding to renew, as the changes in fees and provisions could significantly impact the financial viability of the franchise. Franchisees should also seek legal and financial advice to fully understand the implications of the new agreement before committing to a renewal.

In addition to the new agreement, franchisees must also sign a general release of any and all claims against Aw and its affiliates. Refusal to sign the new agreements and releases within thirty days after delivery will be deemed as an election not to renew the franchise.