What happens to the Aw franchise if the franchisee dies or becomes disabled?

According to Aw's 2025 Franchise Disclosure Document, in the event of the death or disability of a franchisee, the franchise or ownership interest must be assigned to an approved buyer within 6 months. This provision, outlined in Section 14.4 of the franchise agreement, ensures business continuity and adherence to Aw's standards even when the original franchisee is no longer able to operate the business.

For a prospective Aw franchisee, this means that planning for unforeseen circumstances like death or disability is crucial. The franchisee or their estate will need to find a buyer who meets Aw's approval criteria within the specified timeframe. This could involve working with a business broker or directly soliciting potential buyers who are already familiar with the Aw brand.

The requirement for franchisor approval is a standard practice in franchising, allowing Aw to maintain control over who operates its franchises and ensures that new operators are qualified and capable. The 6-month timeframe provides a reasonable window to find a suitable buyer while minimizing disruption to the business. However, it's important to note that failure to find an approved buyer within this period could potentially lead to termination of the franchise agreement, so it is important to have a plan in place.