Is an Aw franchisee allowed to take any action that tarnishes or dilutes Aw's rights in the Marks?
Aw Franchise · 2025 FDDAnswer from 2025 FDD Document
You must not, at any time during the term of this Agreement or after its termination or expiration do any of the following: (1) make any oral or written representation or admission that any of the Marks is in any way invalid or infringes the rights of any person or is open to any other form of attack, (2) contest the validity or ownership of any of the Marks or assist any other person in contesting the validity or ownership of the Marks, or (3) take any action that derogates, tarnishes or dilutes our claimed rights in and to the Marks.
Source: Item 22 — CONTRACTS (FDD pages 39–40)
What This Means (2025 FDD)
According to the 2025 Aw Franchise Disclosure Document, franchisees are explicitly prohibited from taking any action that could harm or weaken Aw's trademark rights. This restriction applies both during the term of the Franchise Agreement and after its termination or expiration.
Specifically, franchisees cannot make any statements that question the validity of Aw's trademarks, challenge Aw's ownership of the trademarks, or assist anyone else in doing so. Furthermore, franchisees are barred from any action that could disparage, tarnish, or dilute Aw's rights to the Marks. This is a standard clause in franchise agreements, designed to protect the franchisor's brand identity and reputation.
This provision is crucial for Aw to maintain the strength and integrity of its brand. By preventing franchisees from taking actions that could harm the trademarks, Aw ensures consistent brand representation and protects its investment in the brand's goodwill. Franchisees must be aware of these restrictions and adhere to them strictly to avoid breaching the Franchise Agreement.