What is the consequence if an Aw franchisee impairs the goodwill associated with the Marks?

According to Aw's 2025 Franchise Disclosure Document, if a franchisee makes any unauthorized use of the Marks or any other identifying characteristics of the System or otherwise impairs the goodwill associated with these characteristics, it constitutes a breach of the franchise agreement.

Specifically, such impairment is listed as a cause for termination of the agreement. This means Aw could terminate the franchise agreement if the franchisee's actions damage the brand's reputation or goodwill.

This provision highlights the importance Aw places on protecting its brand identity and reputation. Franchisees must adhere to the standards and guidelines set forth in the franchise agreement and operations manual to avoid actions that could be detrimental to the brand's goodwill. This includes using approved marketing materials, maintaining the quality of products and services, and ensuring a positive customer experience. Failure to comply can lead to the termination of the franchise agreement, resulting in the loss of the franchise and associated investment.