Can an Aw franchisee employ individuals who are employed by the franchisor or its affiliates after termination?

According to Aw's 2025 Franchise Disclosure Document, a franchisee is restricted from recruiting or hiring employees or former employees of Aw, its affiliates, or other Aw franchisees. This restriction applies during the term of the franchise agreement and extends for six months after an employee's termination of employment. To hire such an individual within this timeframe, the franchisee must obtain prior written consent from Aw.

This policy is designed to protect Aw's interests by preventing franchisees from poaching trained staff and potentially gaining an unfair competitive advantage. It ensures that franchisees invest in their own employee recruitment and training efforts rather than relying on the resources of Aw or other franchisees. This type of restriction is relatively common in franchising to maintain brand consistency and protect proprietary knowledge.

For a prospective Aw franchisee, this means that you need to be aware of this hiring restriction and plan your staffing accordingly. If you are considering hiring someone who currently works for Aw or has worked for Aw or another franchisee within the last six months, you must obtain written permission from Aw. Failure to comply with this provision could result in a breach of the franchise agreement and potential penalties.