What is the scope of the 'other remedies' that Aw may have in addition to performing maintenance on behalf of the franchisee?
Aw Franchise · 2025 FDDAnswer from 2025 FDD Document
If at any time in our reasonable judgment, the general state of repair, appearance or cleanliness of the Premises (including parking areas) or its fixtures, equipment, furniture or signs does not meet our standards, we may notify you, specifying the action you need to take to correct
the deficiency. If you do not initiate within ten (10) days after receipt of our notice, and then continue in good faith and with due diligence, a bona fide program to complete any required maintenance or refurbishing, we have the right, but not the obligation, to do the required maintenance and refurbishing on your behalf, and you agree to reimburse us on demand. The foregoing is in addition to any other remedies we may have.
Source: Item 22 — CONTRACTS (FDD pages 39–40)
What This Means (2025 FDD)
According to Aw's 2025 Franchise Disclosure Document, if a franchisee fails to maintain the premises to Aw's standards, Aw can perform the maintenance and charge the franchisee for it. In addition to this remedy, Aw retains the right to pursue 'any other remedies' available to them. The FDD does not explicitly define or limit what these 'other remedies' may include.
This clause grants Aw broad discretion in addressing a franchisee's failure to maintain the premises. These additional remedies could potentially include financial penalties, stricter oversight, or even actions leading to termination of the franchise agreement, depending on the severity and frequency of the maintenance issues. The lack of specific details in the FDD means that the franchisee faces uncertainty regarding the full extent of Aw's recourse options.
Prospective Aw franchisees should seek clarification from Aw regarding the specific types of 'other remedies' that Aw might pursue in conjunction with performing maintenance on the franchisee's behalf. Understanding the potential consequences beyond reimbursement for maintenance costs is crucial for making an informed investment decision. Franchisees should also inquire about the criteria Aw uses to determine when these additional remedies are invoked.