In the event of death or disability of an Aw franchisee, how long does the franchisee have to assign the franchise or ownership interest to an approved buyer?

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

This provision ensures that the Aw franchise can continue operating even if the original franchisee is no longer able to manage the business. The 6-month timeframe provides a reasonable period for the franchisee's estate or legal representative to find a qualified buyer and complete the transfer process. The buyer is subject to approval by Aw.

It is important for prospective Aw franchisees to understand the implications of this clause. In the event of death or disability, the franchisee's family or estate will need to act quickly to find an approved buyer to avoid potential termination of the franchise agreement. This may involve legal and financial considerations, such as valuing the business, marketing it to potential buyers, and negotiating the terms of the transfer. Franchisees should consult with legal and financial advisors to plan for such contingencies.

This type of clause is relatively standard in franchise agreements. It protects the franchisor's brand and ensures continuity of operations while providing some flexibility for the franchisee's family or estate. Franchisees should carefully review Section 14.4 of the franchise agreement for more details on the specific requirements and procedures for transferring the franchise in the event of death or disability.