Which section of the Aw franchise agreement is amended regarding the initial franchise fee in Illinois?
Aw Franchise · 2025 FDDAnswer from 2025 FDD Document
- Section 10.1 of the Franchise Fee on "Initial Franchise Fee" is amended by the addition of the following:
The Office of the Illinois Attorney General requires Company to defer all initial franchise fees until such time as the Company has completed all initial obligations owed to the Franchisee under the Franchise Agreement and the Franchisee has commenced doing business. This deferral of the initial franchise fee is required based on the Company's
Source: Item 22 — CONTRACTS (FDD pages 39–40)
What This Means (2025 FDD)
According to Aw's 2025 Franchise Disclosure Document, Section 10.1 of the franchise agreement, which pertains to the "Initial Franchise Fee," is amended for franchisees in Illinois. This amendment includes a stipulation that Aw must defer all initial franchise fees until Aw has fulfilled all initial obligations to the franchisee as outlined in the Franchise Agreement, and the franchisee has commenced business operations.
This deferral is mandated by the Office of the Illinois Attorney General and is based on Aw's financial condition. This modification ensures that franchisees in Illinois are not required to pay the initial franchise fee until Aw has met its contractual obligations and the franchisee has started their business.
This requirement provides a level of financial protection for new Aw franchisees in Illinois, ensuring that they do not pay the initial franchise fee before Aw has fulfilled its obligations. Prospective franchisees should carefully review this section and understand the conditions under which the initial franchise fee becomes payable.