What is the consequence if an Aw franchisee makes an unauthorized use of any other identifying characteristics of the System?

According to Aw's 2025 Franchise Disclosure Document, if a franchisee makes unauthorized use of the Marks or any other identifying characteristics of the System, this constitutes a breach of the franchise agreement. Specifically, the agreement states that franchisees must not impair the goodwill associated with these characteristics. This also extends to unauthorized use, duplication, or disclosure of any portion of the Operations Manual or other proprietary written materials.

This provision is crucial for protecting Aw's brand identity and the integrity of its operating system. Unauthorized use could lead to inconsistencies in service, quality, or branding, which could confuse customers and damage the overall reputation of the Aw brand. It also prevents franchisees from leveraging Aw's confidential information and operational methods for their own benefit outside the scope of the franchise agreement.

The consequences of such a breach can be severe, potentially leading to termination of the franchise agreement. This means the franchisee could lose the right to operate their Aw location and would need to discontinue using all Aw's trademarks and identifying characteristics. Franchisees should, therefore, ensure they fully understand and adhere to the guidelines provided in the Operations Manual and the franchise agreement regarding the use of Aw's intellectual property and confidential information.

This type of clause is standard in most franchise agreements, as franchisors need to protect their brand and system from misuse. Franchisees should pay close attention to these terms and seek clarification from Aw if they are unsure about what constitutes authorized or unauthorized use.