Does the Aw franchise agreement specify who bears the cost of transferring telephone numbers 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)
The 2025 Aw Franchise Disclosure Document addresses the transfer of telephone numbers upon termination or expiration of the franchise agreement. Specifically, the franchisee is required to promptly notify the telephone company and listing agencies about the termination of their right to use any telephone numbers and listings associated with Aw's marks. The franchisee must also authorize the transfer of these telephone numbers and listings to Aw or at Aw's direction.
Aw retains the sole right and interest in all telephone numbers and directory listings associated with its marks. The franchisee, by signing the franchise agreement, appoints Aw as their attorney-in-fact to direct the telephone company and listing agencies to transfer the phone numbers and listings if the franchisee fails 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 to direct the transfer.
However, the FDD does not explicitly state who bears the cost of transferring the telephone numbers and directory listings. It only outlines the responsibilities of the franchisee to authorize and facilitate the transfer. A prospective Aw franchisee should seek clarification from Aw regarding responsibility for covering any costs associated with this transfer to fully understand the financial implications upon termination or expiration of the franchise agreement.