Under what conditions can the franchisee unilaterally waive or reduce any obligation of Aw under the Aw franchise agreement?
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 party under the franchise agreement. This waiver or reduction becomes effective upon delivery of written notice to the other party, or on another effective date stated in the notice of waiver.
However, any waiver granted by Aw is subject to certain conditions. It is without prejudice to any other rights Aw may have, is subject to Aw's continuing review, and can be revoked at Aw's sole discretion at any time and for any reason. This revocation becomes effective upon delivery to the franchisee of ten (10) days prior written notice.
It is important to note that neither the franchisee nor Aw will be deemed to have waived or impaired any right, power, or option reserved by the agreement due to customs or practices varying from the agreement terms, failure to exercise rights, or acceptance of payments after a breach of the agreement. This ensures that Aw retains its rights even if it doesn't always strictly enforce every term of the agreement.