What happens if a franchisee of Aw dies or becomes disabled?

According to Aw's 2025 Franchise Disclosure Document, Section 14.4 of the franchise agreement addresses the death or disability of a franchisee. In such an event, the franchise or ownership interest must be assigned to an approved buyer within 6 months. This means that the franchisee's estate or the franchisee themselves (in the case of disability) is responsible for finding a suitable buyer who meets Aw's approval criteria.

This provision ensures business continuity and protects Aw's brand standards. The requirement for an 'approved buyer' allows Aw to maintain control over who operates the franchise, ensuring they meet the company's standards and have the necessary qualifications. The 6-month timeframe provides a reasonable period to find a buyer while minimizing disruption to the business.

For a prospective Aw franchisee, this clause highlights the importance of succession planning and having a contingency plan in place. Franchisees should consider how their business will be managed or transferred in the event of death or disability. This may involve identifying potential buyers in advance or having a clear plan for the business's future. It is also important to understand Aw's criteria for approving buyers to ensure a smooth transition.