What is an Aw franchisee prohibited from using in another business after termination that would be considered a reproduction of the Marks?
Aw Franchise · 2025 FDDAnswer from 2025 FDD Document
- 16.6 De-Identification of Premises. 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
Source: Item 22 — CONTRACTS (FDD pages 39–40)
What This Means (2025 FDD)
According to Aw's 2025 Franchise Disclosure Document, after the franchise agreement terminates or expires without renewal, a franchisee is prohibited from using any reproduction, counterfeit, copy, or colorable imitation of the Marks in any subsequent business. This restriction applies both to the operation of the new business and its promotion. The purpose is to prevent confusion, mistake, or deception, and to protect Aw's exclusive rights to its Marks.
In practical terms, this means a former Aw franchisee cannot use similar logos, branding, or other identifying features that resemble Aw's Marks in any new business they operate. This includes anything that might dilute Aw's rights to its trademarks. The franchisee must also avoid any designation of origin, description, or representation that falsely suggests an association or connection with Aw, as this would constitute unfair competition.
Aw also specifies that if the franchisee continues to operate a business at the same location after the franchise agreement ends, they must make necessary modifications to the premises to prevent any association with Aw or its system. This includes removing distinctive physical and structural features that identify the System. If the franchisee fails to comply with these requirements, Aw has the right to enter the premises and make the necessary changes at the franchisee's expense.