Does the cost and expenses for enforcing the non-compete for Aw include attorney's fees?

According to Aw's 2025 Franchise Disclosure Document, if a franchisee violates the non-compete agreement, Aw can seek an injunction to stop the franchisee's actions. Furthermore, the franchisee is responsible for covering all costs and expenses Aw incurs while enforcing the non-compete, including reasonable attorneys' and experts' fees. This means that if Aw has to take legal action against a franchisee for violating the non-compete agreement, the franchisee will be required to pay Aw's legal fees and any expert witness fees associated with the case.

This clause is significant for prospective Aw franchisees because it highlights the financial risk associated with violating the non-compete agreement. The costs of defending against a lawsuit and potentially having to pay Aw's legal fees could be substantial. Franchisees should carefully review the terms of the non-compete agreement and ensure they understand their obligations to avoid potential legal action and financial penalties.

It is common practice in franchising for the franchisee to bear the costs of enforcement if they are found to be in violation of the franchise agreement, including non-compete clauses. This provision serves to protect Aw's interests and ensure that franchisees comply with the terms of the agreement. Franchisees should seek legal counsel to fully understand the implications of this clause and the scope of the non-compete agreement before signing the franchise agreement.