Under the Aw franchise agreement, what form must Aw's approval or consent take to be valid?
Aw Franchise · 2025 FDDAnswer from 2025 FDD Document
19.4 Approvals and Consent. Whenever this Agreement requires our prior approval or consent, you must make a timely written request for it. Our approval or consent will not be valid unless it is in writing. .....Except where this Agreement expressly obligates us to reasonably approve or not unreasonably withhold our approval of any of your actions or requests, we have the absolute right to refuse any request by you or to withhold our approval of any action or omission by you. We make no warranties or guaranties upon which you may rely, and we assume no liability or obligation to you, by virtue of granting any waiver, approval or consent, or by reason of any neglect, delay or denial of any request for a waiver, approval or consent.
Source: Item 22 — CONTRACTS (FDD pages 39–40)
What This Means (2025 FDD)
According to Aw's 2025 Franchise Disclosure Document, any approval or consent required from Aw must be provided in writing to be considered valid. This requirement ensures that there is a clear record of Aw's decisions and prevents misunderstandings or disputes about whether consent was actually given.
This provision in the Aw franchise agreement is fairly standard in franchising. It protects both the franchisee and Aw by ensuring that all agreements and approvals are documented. Franchisees should be aware that they cannot rely on verbal agreements or implied consent from Aw; they must obtain written approval for any action that requires it under the franchise agreement.
The franchise agreement also states that Aw has the absolute right to refuse any request or withhold approval of any action or omission by the franchisee, except where the agreement expressly obligates Aw to reasonably approve or not unreasonably withhold approval. This clause gives Aw significant control over the operation of the franchise and highlights the importance of understanding the terms of the franchise agreement before signing.
In practical terms, if an Aw franchisee needs approval for something such as a transfer, site change, or any other action requiring franchisor consent, they must submit a written request. They should then ensure they receive a written response from Aw explicitly granting approval. Without this written approval, the franchisee proceeds at their own risk.