What is the deadline for assigning the Aw franchise or ownership interest to an approved buyer in the event of death or disability?

According to Aw's 2025 Franchise Disclosure Document, in the event of the death or disability of the franchisee, the franchise or ownership interest must be assigned to an approved buyer within 6 months. This requirement is detailed in Section 14.4 of the franchise agreement, as summarized in Item 17 of the FDD.

This provision ensures that in unfortunate circumstances like death or disability, the Aw franchise can continue operating under new, approved management rather than being abruptly terminated. The 6-month timeframe provides a window for the franchisee's estate or representatives to find a suitable buyer and complete the transfer process, subject to Aw's approval.

For a prospective Aw franchisee, this means understanding the importance of succession planning and having a contingency plan in place. Identifying potential buyers or having a clear plan for transferring the franchise in case of unforeseen circumstances can help ensure a smooth transition and protect the value of the franchise investment. The new buyer will need to be approved by Aw.

It is important to note that the FDD only provides a summary of this provision. The specific details and conditions related to the transfer process, including Aw's approval criteria and any associated fees, would be outlined in full in Section 14.4 of the actual franchise agreement. A prospective franchisee should carefully review this section of the agreement to fully understand their obligations and rights in such a situation.