What must an Aw franchisee provide 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 along with the payment of outstanding amounts after the termination or expiration of the franchise agreement. This payment, including the accounting, must be made within ten days of the termination or expiration date.
This requirement ensures that Aw receives all outstanding payments and has a clear record of what is being paid. The franchisee is responsible for providing a detailed breakdown of all royalty fees, marketing fund contributions, service charges, and any other amounts owed to Aw or its affiliates. This accounting should be comprehensive and accurate to avoid any disputes or discrepancies.
For a prospective Aw franchisee, this means maintaining meticulous financial records throughout the franchise term. Upon termination or expiration, franchisees should prepare a detailed accounting statement to accompany their final payment. Failure to provide a complete and accurate accounting could result in legal action or additional fees and penalties. It is crucial to understand and comply with this obligation to ensure a smooth and amicable separation from the Aw franchise system.