When does a waiver of obligation become effective under the Aw franchise agreement, and what are the possible effective dates?
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, either Aw or the franchisee can issue a written waiver or reduce any obligation or restriction upon the other party under the franchise agreement. This waiver becomes effective either immediately upon delivery of written notice to the other party or on another effective date specifically stated in the waiver notice.
This means that if Aw decides to waive a certain requirement for a franchisee, the waiver takes effect when the franchisee receives the written notice, unless the notice states a future date. Conversely, if a franchisee receives a waiver but it is later revoked by Aw, the revocation is effective ten days after the franchisee receives written notice of the revocation.
It's important to note that 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. This revocation becomes effective after the franchisee receives ten days' prior written notice. This clause gives Aw considerable flexibility but also introduces some uncertainty for the franchisee, as a previously granted waiver can be withdrawn.