Does the Aw franchise agreement specify that the franchisee must cease using Confidential Information disclosed pursuant to the agreement upon termination?
Aw Franchise · 2025 FDDAnswer from 2025 FDD Document
- 16.3 Confidential Information. You agree that upon termination or expiration (without renewal) of this Agreement, you will immediately cease to use in any business or otherwise the Confidential Information disclosed to you pursuant to this Agreement and will return to us all copies of the Operations Manual, any proprietary software and other materials containing our proprietary information which have been loaned to you by us.
Source: Item 22 — CONTRACTS (FDD pages 39–40)
What This Means (2025 FDD)
According to Aw's 2025 Franchise Disclosure Document, the franchise agreement explicitly states that upon termination or expiration of the agreement, the franchisee must immediately stop using any Confidential Information disclosed during the agreement. This includes returning all copies of the Operations Manual, proprietary software, and any other materials containing Aw's proprietary information that were loaned to the franchisee. This obligation is designed to protect Aw's trade secrets and proprietary business methods.
This provision is standard in franchising, as franchisors need to ensure their confidential information is not used by former franchisees to compete against the system. The definition of "Confidential Information" is broad, encompassing various aspects of the Aw business, including methods, techniques, recipes, knowledge of sales and profit performance, marketing programs, and the contents of the Operations Manual.
For a prospective Aw franchisee, this means understanding that access to Aw's confidential information is strictly limited to the duration of the franchise agreement. After the agreement ends, all rights to use this information cease, and the franchisee must take steps to ensure they no longer utilize it in any business or capacity. Failure to comply could result in legal action from Aw to protect its intellectual property.