Can Aw establish franchised, licensed, or owned businesses at any location they deem appropriate?

According to Aw's 2025 Franchise Disclosure Document, Aw retains the right to establish businesses that are franchised, licensed, or owned by them or any affiliate at any locations they deem appropriate. They can also distribute products or services similar to those offered under the Aw system using different trade names or trademarks. This right applies to both locations within and outside of a franchisee's protected area.

This means that while franchisees are granted a protected area, Aw reserves significant rights to operate or franchise similar businesses nearby. This could potentially increase competition for an Aw franchisee, even within their general market area. The FDD specifies that Aw can also distribute products and services through alternative channels like supermarkets or the internet, which could further impact a franchisee's sales.

Prospective franchisees should carefully consider the implications of these rights retained by Aw. While a protected area is granted, the franchisor's ability to establish competing businesses or alternative distribution channels could affect the franchisee's market share and profitability. It is important to discuss these potential competitive scenarios with Aw and existing franchisees to fully understand the possible impact on their investment.