Does the Aw franchise agreement allow Aw to designate where the telephone number is transferred after termination?
Aw Franchise · 2025 FDDAnswer from 2025 FDD Document
- (d) promptly notify the telephone company and all listing agencies of the termination or expiration of your right to use any telephone number and any telephone directory listings associated with the Marks and to authorize transfer of same to or at our direction.
You acknowledge that as between the Company and you, we have the sole right to and interest in all telephone numbers and directory listings associated with the Marks, and you authorize us, and by execution of the Exhibit 4 Collateral Assignment of Telephone Number have appointed us and any of our officers as your attorney-in-fact, to direct the telephone company and all listing agencies to transfer same to us or at its direction, should you fail or refuse to do so, and the telephone company and all listing agencies may accept such direction or this Agreement as conclusive of our exclusive rights in such telephone numbers and directory listings and its authority to direct their transfer;
Source: Item 22 — CONTRACTS (FDD pages 39–40)
What This Means (2025 FDD)
According to the 2025 Aw Franchise Disclosure Document, upon termination or expiration of the franchise agreement, the franchisee must promptly notify the telephone company and listing agencies about the termination of their right to use any telephone number and directory listings associated with Aw's marks. The franchisee must authorize the transfer of the phone number and listings to Aw or to whomever Aw directs.
The Aw franchise agreement states that Aw has the sole right to and interest in all telephone numbers and directory listings associated with its marks. The franchisee, by signing the agreement, appoints Aw as their attorney-in-fact to direct the telephone company and listing agencies to transfer the phone number and listings to Aw or at its direction if the franchisee fails or refuses to do so. The telephone company and listing agencies can accept Aw's direction or the franchise agreement as conclusive evidence of Aw's exclusive rights.
This means that upon termination, Aw has the right to control the phone number and listings associated with the franchise. This is a fairly standard practice in franchising, as it allows Aw to maintain brand consistency and control over its image and customer communications. A prospective franchisee should understand that they will lose control of the phone number and listings they used during the franchise term and should plan accordingly for customer communications after termination.