factual

What should an Aw franchisee do to the premises if they continue to operate another business after termination?

Aw Franchise · 2025 FDD

Answer from 2025 FDD Document

Upon termination or expiration of this Agreement, you agree, in the event you continue to operate or subsequently begin to operate any other business (subject to any restrictions against doing so provided in this Agreement), not to use any reproduction, counterfeit, copy or colorable imitation of the Marks either in connection with such other business or the promotion thereof, which is likely to cause confusion, mistake or deception, or which is likely to dilute our exclusive rights in and to the Marks and further agree not to utilize any designation of origin or description or representation which falsely suggests or represents an association or connection with us so as to constitute unfair competition.

If we do not opt to take assignment of the lease for the Premises upon the expiration or termination of this Agreement, you shall immediately make such

modifications or alterations to the Premises as may be necessary to prevent any association between us or the System and any business thereon subsequently operated by you or others, and shall make such specific additional changes thereto as we may reasonably request for that purpose, including, without limitation, removal of all distinctive physical and structural features identifying the System. In the event you fail or refuse to comply with the requirements of this Paragraph, we shall have the right to enter upon the premises, without being guilty of trespass or any other tort, for the purpose of making or causing to be made such changes as may be required at your expense, which expense you agree to pay upon demand.

Source: Item 22 — CONTRACTS (FDD pages 39–40)

What This Means (2025 FDD)

According to Aw's 2025 Franchise Disclosure Document, if a franchisee continues to operate another business at the premises after the termination or expiration of their franchise agreement, they must take specific steps to de-identify the location. The franchisee must avoid using any reproductions or imitations of Aw's trademarks that could cause confusion or dilute Aw's exclusive rights to its marks. Additionally, they cannot use any descriptions or representations that falsely suggest an association with Aw. This is to prevent unfair competition and protect Aw's brand identity.

If Aw does not take over the lease, the franchisee is required to make modifications to the premises to eliminate any association with Aw or its system. This includes removing all distinctive physical and structural features that identify the Aw franchise. Aw has the right to request specific additional changes for this purpose.

Should the franchisee fail to comply with these requirements, Aw has the right to enter the premises and make the necessary changes at the franchisee's expense. The franchisee is obligated to pay these expenses upon demand. This ensures that Aw can protect its brand and prevent any confusion or misrepresentation after a franchise agreement ends.

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.