Under the Aw franchise agreement, when must a request for approval or consent be made?
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, whenever the franchise agreement requires Aw's prior approval or consent, the franchisee must make a timely written request for it. This is a general requirement applicable to various situations throughout the franchise relationship. Aw's approval or consent is only considered valid if it is provided in writing.
This requirement ensures that all requests are documented and that Aw has an opportunity to review and respond to them. It also protects both parties by providing a clear record of what was requested and what was approved or denied. However, Aw retains the absolute right to refuse any request or withhold approval unless the agreement expressly states that approval should be reasonably granted or not unreasonably withheld.
This clause has significant implications for prospective Aw franchisees. It means that franchisees must be proactive in seeking approval for any actions that require it under the franchise agreement. Failure to obtain written approval could result in a breach of the agreement. Franchisees should also be aware that Aw has broad discretion in granting or denying requests, so it is important to present a strong case for any proposed action. Franchisees should carefully review the franchise agreement to understand which actions require approval and the process for obtaining it.