What happens if an Aw franchisee fails to transfer the telephone number after termination?
Aw Franchise · 2025 FDDAnswer from 2025 FDD Document
- (d) promptly notify the telephone company and all listing agencies of the termination or expiration of your right to use any telephone number and any telephone directory listings associated with the Marks and to authorize transfer of same to or at our direction.
You acknowledge that as between the Company and you, we have the sole right to and interest in all telephone numbers and directory listings associated with the Marks, and you authorize us, and by execution of the Exhibit 4 Collateral Assignment of Telephone Number have appointed us and any of our officers as your attorney-in-fact, to direct the telephone company and all listing agencies to transfer same to us or at its direction, should you fail or refuse to do so, and the telephone company and all listing agencies may accept such direction or this Agreement as conclusive of our exclusive rights in such telephone numbers and directory listings and its authority to direct their transfer;
Source: Item 22 — CONTRACTS (FDD pages 39–40)
What This Means (2025 FDD)
According to Aw's 2025 Franchise Disclosure Document, Aw retains sole rights and interest in all telephone numbers and directory listings associated with its marks. Upon termination or expiration of the franchise agreement, the franchisee is required to promptly notify the telephone company and listing agencies about the termination of their right to use any telephone number and directory listings associated with Aw's marks. The franchisee must also authorize the transfer of these to Aw or at Aw's direction.
If a franchisee fails or refuses to transfer the telephone number and directory listings, they authorize Aw to act as their attorney-in-fact to direct the telephone company and listing agencies to transfer the same to Aw or at its direction. The telephone company and listing agencies may accept Aw's direction or the franchise agreement itself as conclusive evidence of Aw's exclusive rights to direct the transfer. This means Aw has the power to legally compel the transfer of the phone number and listings without further consent from the franchisee.
This provision protects Aw's brand identity and customer access by ensuring that phone numbers and listings associated with the brand remain under Aw's control after a franchise terminates. For a prospective franchisee, this highlights the importance of understanding all obligations upon termination, including the transfer of assets like phone numbers that are critical to the business. The franchisee effectively gives Aw the power of attorney to make these changes, so compliance is not optional.