What must an Aw franchisee furnish along with the payment of outstanding amounts after termination or expiration?
Aw Franchise · 2025 FDDAnswer from 2025 FDD Document
- 16.1 Payment of Amounts Owed to the Company. You agree to pay to us within ten (10) days after the effective date of termination or expiration (without renewal) of this Agreement such royalty fees, marketing fund contributions, service charges due us on any of the foregoing and all other amounts owed to us and our affiliates which are then unpaid. You must furnish a complete accounting of all such amounts owed to us and our affiliates with the payment.
Source: Item 22 — CONTRACTS (FDD pages 39–40)
What This Means (2025 FDD)
According to Aw's 2025 Franchise Disclosure Document, a franchisee must furnish a complete accounting of all amounts owed to Aw and its affiliates when making the final payment after termination or expiration of the franchise agreement. This accounting must be submitted within ten days of the termination or expiration date.
This requirement ensures that all financial obligations are settled at the end of the franchise relationship. It protects Aw by providing a clear record of what is owed and paid. The franchisee needs to maintain accurate financial records throughout the franchise term to comply with this provision.
Missing this accounting could lead to legal disputes or additional fees if Aw has to independently determine the outstanding balance. Therefore, franchisees should keep detailed records of all payments and financial transactions with Aw to facilitate a smooth termination process.