Is a waiver granted by Aw subject to continuing review?
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, any waiver that Aw grants to a franchisee is subject to continuing review. Specifically, Aw retains the right to revoke a waiver at any time, for any reason.
This means that even if Aw initially waives a certain requirement or obligation for a franchisee, it can later reinstate that requirement with only ten days' written notice. This clause provides Aw with considerable flexibility in managing its franchise system and ensuring compliance with its standards.
For a prospective Aw franchisee, this implies that any waiver obtained should not be viewed as permanent. Franchisees must be prepared for the possibility that Aw could revoke the waiver and require strict adherence to the original terms of the franchise agreement. This condition underscores the importance of maintaining a strong relationship with Aw and understanding the potential implications of any waivers granted.