What is the Aw franchisee prohibited from utilizing after termination that falsely suggests an association with the franchisor?
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
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, after the franchise agreement terminates or expires, a franchisee is prohibited from using any designation of origin, description, or representation that falsely suggests an association or connection with Aw. This includes any actions that could be considered unfair competition or that might dilute Aw's exclusive rights to its marks.
To prevent any confusion or misrepresentation, Aw requires franchisees to make necessary modifications or alterations to the premises if they continue to operate any other business after the termination or expiration of the franchise agreement. These changes aim to eliminate any association between Aw and the subsequent business. Aw may request specific additional changes, including the removal of distinctive physical and structural features that identify the Aw system.
If a 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. The franchisee agrees to pay these expenses upon demand. This ensures that Aw can protect its brand identity and prevent any potential consumer confusion after a franchise agreement ends.