factual

Does the Aw franchise agreement specify who is responsible for the costs associated with cancelling fictitious name registrations after termination of the Aw franchise?

Aw Franchise · 2025 FDD

Answer from 2025 FDD Document

  • 16.2 The Marks. You (and your Owners) agree that after the termination or expiration (without renewal) of this Agreement you will:
  • (c) promptly take such action as may be required to cancel all fictitious or assumed name, "doing business as" or equivalent registrations relating to your use of the Marks;

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 is responsible for taking action to cancel all fictitious or assumed name registrations related to the use of Aw's marks. The franchise agreement does not explicitly state who bears the costs associated with these cancellations.

This means that as a prospective Aw franchisee, you will likely be responsible for covering the expenses involved in cancelling any fictitious name registrations (also known as "doing business as" or DBA registrations) that you established to operate your Aw franchise. These costs can include administrative fees, legal fees if you seek assistance with the cancellation process, and any other expenses directly related to fulfilling this obligation.

Franchise agreements often specify the franchisee's responsibilities upon termination to ensure a clean break and protect the franchisor's brand. While the Aw agreement clearly mandates the franchisee to cancel the registrations, the absence of explicit cost allocation language leaves room for interpretation. It would be prudent for a potential franchisee to seek clarification from Aw regarding responsibility for these costs to avoid potential disputes later. You should ask Aw for clarification on whether they expect the franchisee to bear these costs, or if there is any assistance or reimbursement provided by Aw for these expenses.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.