Under what conditions can Aw waive an obligation of 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, Aw or the franchisee can waive obligations under specific conditions. Either party can unilaterally waive or reduce any obligation or restriction upon the other by a written instrument. This waiver becomes effective upon delivery of written notice to the other party, or on another effective date stated 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 its sole discretion. This revocation becomes effective after delivering a ten-day prior written notice to the franchisee.
The FDD also clarifies that neither Aw nor the franchisee will be considered to have waived or impaired any right, power, or option reserved by the franchise agreement. This includes the right to demand exact compliance with every term, condition, and covenant. This protection extends regardless of any custom or practice varying from the agreement's terms, any failure to exercise a right, or any acceptance of payments after a breach of the agreement.