Does the Aw franchise agreement specify any penalties for failing to comply with the obligations related to telephone number transfer 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 Aw's 2025 Franchise Disclosure Document, upon termination or expiration of the franchise agreement, the franchisee is obligated to promptly notify the telephone company and listing agencies about the termination of their right to use any telephone numbers and directory listings associated with Aw's marks. The franchisee must also authorize the transfer of these to Aw's direction.
Aw retains the sole right and interest in all telephone numbers and directory listings associated with its marks. By signing the Collateral Assignment of Telephone Number exhibit, the franchisee appoints Aw as their attorney-in-fact to direct the transfer of these telephone numbers and listings. This allows Aw to instruct the telephone company and listing agencies to transfer the numbers and listings 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 and authority to direct the transfer.
The franchise agreement outlines Aw's right to take control of the phone numbers and listings, but it does not explicitly state any specific monetary penalties or fines for failing to comply with the telephone number transfer obligations after termination. However, failure to comply could potentially lead to legal action to enforce the transfer, as Aw retains the rights to those numbers.