Is there a cure period for lease defaults that an Aw franchisee commits, and where is it defined?
Aw Franchise · 2025 FDDAnswer from 2025 FDD Document
- 15.2 By the Company With Opportunity to Cure. We have the right to terminate this Agreement upon written notice to you if you (or any of your Owners):
- (b) commit any act or omission of default under the lease for the Premises and do not cure the default within the applicable cure period set forth in the lease;
Source: Item 22 — CONTRACTS (FDD pages 39–40)
What This Means (2025 FDD)
According to Aw's 2025 Franchise Disclosure Document, a franchisee has an opportunity to cure a lease default. Specifically, if a franchisee commits an act or omission of default under the lease for the premises, they have the applicable cure period set forth in the lease to correct the default. This is detailed within Section 15.2 (b) of Item 22, which discusses the conditions under which Aw can terminate the franchise agreement with an opportunity to cure.
This means that if Aw receives notice of a lease default, the franchisee will be given the same amount of time to correct the issue as is stipulated in their lease agreement with the landlord. The FDD specifies that Aw must provide written notice of the default, triggering the cure period. It is important to note that the cure period is defined by the lease itself, not the franchise agreement.
Prospective Aw franchisees should carefully review the lease agreement for their specific location to understand the length and terms of the cure period for lease defaults. They should also ensure they understand what constitutes a default under the lease. This information is crucial for maintaining compliance and avoiding potential termination of the franchise agreement.