What happens to any proprietary software loaned to the Aw franchisee upon termination or expiration of the franchise agreement?
Aw Franchise · 2025 FDDAnswer from 2025 FDD Document
- 16.3 Confidential Information. You agree that upon termination or expiration (without renewal) of this Agreement, you will immediately cease to use in any business or otherwise the Confidential Information disclosed to you pursuant to this Agreement and will return to us all copies of the Operations Manual, any proprietary software and other materials containing our proprietary information which have been loaned to you by us.
Source: Item 22 — CONTRACTS (FDD pages 39–40)
What This Means (2025 FDD)
According to Aw's 2025 Franchise Disclosure Document, if the franchise agreement is terminated or expires without renewal, the franchisee must immediately stop using any confidential information disclosed during the agreement. This includes proprietary software. The franchisee is obligated to return all copies of the Operations Manual, any proprietary software, and other materials containing Aw's proprietary information that were loaned to them.
This requirement ensures that Aw maintains control over its confidential and proprietary assets, preventing former franchisees from using sensitive information to compete or otherwise benefit unfairly. It is a standard practice in franchising to protect the brand's intellectual property and operational methods.
For a prospective Aw franchisee, this means that access to and use of the proprietary software is strictly limited to the term of the franchise agreement. Upon termination or expiration, all such software must be returned, and the franchisee can no longer use it in any business or other capacity.