If an Aw franchisee continues to operate another business after termination, what are they prohibited from using?
Aw Franchise · 2025 FDDAnswer from 2025 FDD Document
- 16.6 De-Identification of Premises. Upon termination or expiration of this Agreement, you agree, in the event you continue to operate or subsequently begin to operate any other business (subject to any restrictions against doing so provided in this Agreement), not to use any reproduction, counterfeit, copy or colorable imitation of the Marks either in connection with such other business or the promotion thereof, which is likely to cause confusion, mistake or deception, or which is likely to dilute our exclusive rights in and to the Marks and further agree not to utilize any designation of origin or description or representation which falsely suggests or represents an association or connection with us so as to constitute unfair competition.
If we do not opt to take assignment of the lease for the Premises upon the expiration or termination of this Agreement, you shall immediately make such
Source: Item 22 — CONTRACTS (FDD pages 39–40)
What This Means (2025 FDD)
According to Aw's 2025 Franchise Disclosure Document, after the termination or expiration of the Franchise Agreement, if a franchisee continues to operate another business, they are prohibited from using any reproduction, counterfeit, copy, or colorable imitation of Aw's Marks. This restriction applies to both the operation of the other business and its promotion. The purpose is to prevent confusion, mistake, or deception, and to protect Aw's exclusive rights to its Marks.
In practical terms, this means a former Aw franchisee cannot use any branding, logos, or other identifying features that are similar to those used by Aw. This includes anything that might lead customers to believe the new business is still affiliated with Aw. The franchisee must ensure that the new business has a completely distinct identity to avoid any potential legal issues or claims of unfair competition.
Aw also requires that franchisees not utilize any designation of origin, description, or representation that falsely suggests an association or connection with Aw. This is to prevent unfair competition by ensuring that the public is not misled into thinking the new business is still part of the Aw franchise system. The franchisee must take active steps to differentiate the new business and avoid any implication of a continued relationship with Aw.
To further ensure separation, Aw may request specific modifications or alterations to the premises of the former franchise location to prevent any association between Aw and any subsequent business operated there. This could include removing distinctive physical and structural features that identify the System. If the franchisee fails to comply with these requirements, Aw has the right to enter the premises and make the necessary changes at the franchisee's expense.