Under what conditions can an Aw franchisee unilaterally waive or reduce any obligation of Aw under the franchise agreement, and what form must this waiver take?
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.
Source: Item 22 — CONTRACTS (FDD pages 39–40)
What This Means (2025 FDD)
According to Aw's 2025 Franchise Disclosure Document, a franchisee can unilaterally waive or reduce any obligation or restriction upon Aw under the franchise agreement. This waiver or reduction must be in writing. The franchisee must deliver a written notice to Aw, and the waiver becomes effective upon delivery of this notice, or on another effective date if specified in the notice itself.
However, it's important to note that any waiver granted by Aw to the franchisee is subject to Aw's continuing review. Aw has the right to revoke the waiver at any time, for any reason, at its sole discretion. To revoke a waiver, Aw must provide the franchisee with ten days prior written notice.
This clause ensures that while franchisees have the power to offer some flexibility to Aw, Aw retains ultimate control and can reinstate the original obligations with adequate notice. This is a fairly standard provision in franchise agreements, allowing for adaptability while protecting the franchisor's overall interests and brand standards.