If Aw directs a franchisee to modify or discontinue use of any mark, who bears the expense?

According to Aw's 2025 Franchise Disclosure Document, if Aw determines that it is advisable to modify or discontinue the use of any mark, the franchisee is responsible for complying with Aw's directions at the franchisee's own expense. This includes any costs associated with modifying or discontinuing the use of a trademark, or adopting additional or substitute trademarks. The franchisee must comply within a reasonable time after receiving notice from Aw.

This stipulation places the financial burden on the franchisee to adapt to Aw's decisions regarding trademarks. This could involve expenses related to changing signage, marketing materials, or other branded items. It is important for a prospective Aw franchisee to consider this potential cost when evaluating the franchise opportunity, as trademark modifications could arise due to various reasons, including legal challenges or rebranding initiatives.

In the franchise industry, it is not uncommon for franchisees to bear the costs associated with implementing changes to trademarks or branding, as the franchisor typically retains control over the brand's image and standards. However, the specific allocation of expenses can vary, so prospective franchisees should carefully review the franchise agreement and seek clarification from Aw regarding the potential frequency and financial impact of such changes.