Can Aw match any offer for my business or an ownership interest in me?
Aw Franchise · 2025 FDDAnswer from 2025 FDD Document
| PROVISION | SECTION IN FRANCHISE AGREEMENT | SUMMARY |
|---|---|---|
| n. Franchisor’s right of first refusal | Section 14.6 | We can match any offer for your business or an |
| to acquire franchisee’s business | ownership interest in you. |
Source: Item 17 — RENEWAL, TERMINATION, TRANSFER, AND DISPUTE RESOLUTION (FDD pages 34–36)
What This Means (2025 FDD)
According to Aw's 2025 Franchise Disclosure Document, Aw has the right of first refusal to acquire a franchisee's business. Specifically, Aw can match any offer that a franchisee receives for their business or for an ownership interest in the franchise. This is detailed in Section 14.6 of the franchise agreement.
This right of first refusal means that if a franchisee wants to sell their Aw franchise, they must first offer Aw the opportunity to buy it on the same terms as any other potential buyer. The franchisee cannot simply accept an offer from a third party; they must give Aw the chance to match that offer. This provision allows Aw to maintain control over who becomes a franchisee and ensures that the brand can strategically manage its locations and ownership.
For a prospective franchisee, this condition could impact their exit strategy. While they are free to find a buyer for their business, Aw ultimately has the final say in who purchases the franchise. Franchisees should consider this when evaluating the potential resale value of their Aw franchise and factor in the possibility that Aw may exercise its right of first refusal. It is a fairly common practice in franchising to give the franchisor the right of first refusal.