When does a waiver of obligation become effective under the Aw franchise agreement?
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, either Aw or the franchisee can waive or reduce any obligation or restriction under the franchise agreement by providing a written instrument. This waiver becomes effective either upon delivery of written notice to the other party or on another effective date specifically stated in the waiver notice.
However, any waiver granted by Aw is subject to continuing review and can be revoked at any time, for any reason, at Aw's sole discretion. To revoke a waiver, Aw must deliver a ten (10) day prior written notice to the franchisee.
It is important to note that the failure of either Aw or the franchisee to enforce any right or insist on compliance with the agreement's terms does not constitute a waiver of those rights. This ensures that Aw retains its ability to enforce the franchise agreement's provisions in the future, despite any previous leniency or deviations from the agreement's terms.