What is the consequence if an Aw franchisee fails or refuses to transfer telephone numbers after termination?

According to Aw's 2025 Franchise Disclosure Document, if a franchisee fails or refuses to transfer telephone numbers and directory listings associated with the Aw marks upon termination or expiration of the franchise agreement, Aw has the authority to act on the franchisee's behalf. Specifically, the franchisee, by signing the Exhibit 4 Collateral Assignment of Telephone Number, appoints Aw or its officers as their attorney-in-fact. This appointment empowers Aw to direct the telephone company and listing agencies to transfer the phone numbers and listings to Aw or its designee. The telephone company and listing agencies are authorized to accept Aw's direction or the franchise agreement itself as conclusive evidence of Aw's exclusive rights to the phone numbers and listings and its authority to direct their transfer. This ensures that Aw maintains control over the telephone numbers and directory listings associated with the brand, even after a franchise agreement ends. This is a fairly standard practice to ensure brand consistency.

This provision protects Aw's brand identity and customer goodwill. By controlling the telephone numbers and directory listings, Aw can ensure that customers continue to reach the company through the same channels, even after a franchise location closes or changes ownership. This prevents confusion and ensures a seamless transition for customers.

For a prospective Aw franchisee, this means that upon termination or expiration of the franchise agreement, they must promptly transfer all telephone numbers and directory listings associated with the Aw brand to the company. Failure to do so will result in Aw taking control of the transfer process, using the power of attorney granted by the franchisee in the Collateral Assignment of Telephone Number. This is a legally binding agreement, and franchisees should be aware of their obligations in this regard.