Under what condition can Aw waive or reduce any obligation of or restriction upon the franchisee?
Aw Franchise · 2025 FDDAnswer from 2025 FDD Document
- 19.3 Waiver of Obligations. Either you or the Company may, by written instrument, unilaterally waive or reduce any obligation of or restriction upon the other under this Agreement, effective upon delivery of written notice thereof to the other or such other effective date stated in the notice of waiver. Any waiver granted by us will be without prejudice to any other rights we may have, will be subject to our continuing review, and may be revoked, in our sole discretion, at any time and for any reason, effective upon delivery to you of ten (10) days prior written notice.
Neither you nor the Company will be deemed to have waived or impaired any right, power or option reserved by this Agreement (including, without limitation, the right to demand exact compliance with every term, condition and covenant herein, or to declare any breach thereof to be a default and to terminate the Franchise prior to the expiration of its terms), by virtue of: (1) any custom or practice of the parties at variance with the terms hereof; (2) any failure, refusal or neglect of either of us to exercise any right under this Agreement or to insist upon exact compliance by the other with its obligations hereunder, including, without limitation, any mandatory specification, standard or operating procedure; (3) any waiver, forbearance, delay, failure or omission by us to exercise any
Source: Item 22 — CONTRACTS (FDD pages 39–40)
What This Means (2025 FDD)
According to Aw's 2025 Franchise Disclosure Document, either Aw or the franchisee can unilaterally waive or reduce any obligation or restriction upon the other, but it must be done through a written instrument. This waiver becomes effective once written notice is delivered, or on another date specified in the waiver notice.
However, any waiver granted by Aw is not absolute. Aw retains the right to review the waiver continuously and can revoke it at any time, for any reason, at their sole discretion. To revoke a waiver, Aw must provide the franchisee with ten days prior written notice.
The FDD also clarifies that Aw's failure to enforce any right or demand strict compliance with the franchise agreement does not constitute a waiver of those rights. This includes any custom or practice that deviates from the agreement's terms, or any delay or omission in exercising a right. Aw's acceptance of payments after a breach of the agreement also does not constitute a waiver.