Which obligations of the franchisee and Aw survive the expiration or termination of the Franchise Agreement?
Aw Franchise · 2025 FDDAnswer from 2025 FDD Document
- 16.9 Costs of Enforcement. You agree to pay to us all costs and expenses, including reasonable attorneys' fees and costs, incurred by us subsequent to the termination or expiration of this Agreement in obtaining injunctive or other relief for the enforcement of any provisions of this Section 16.
- 16.10 Continuing Obligations. All obligations of the Company and you which expressly or by their nature survive the expiration or termination of this Agreement will continue in full force and effect subsequent to and notwithstanding its expiration or termination and until they are satisfied or by their nature expire.
Source: Item 22 — CONTRACTS (FDD pages 39–40)
What This Means (2025 FDD)
According to Aw's 2025 Franchise Disclosure Document, several obligations of both the franchisee and Aw survive the expiration or termination of the Franchise Agreement. Specifically, all obligations that are expressly stated to survive or by their nature would survive, remain in full effect even after the agreement ends. These obligations remain in effect until they are either completely fulfilled or naturally expire.
Franchisee obligations that survive termination or expiration include, but are not limited to, the payment of all outstanding amounts owed to Aw, compliance with post-term covenants (such as non-compete agreements outlined in Section 17), and covering Aw's costs of enforcement related to any breaches of Section 16 of the agreement. The franchisee must also cease operations immediately upon termination or expiration, and at Aw's option, assign the lease for the premises to Aw. Additionally, the franchisee is responsible for de-identifying the premises to remove any association with Aw if they continue to operate a business at the location.
These stipulations ensure that Aw can protect its brand and interests even after a franchise agreement concludes. For a prospective franchisee, this means understanding that certain financial and operational responsibilities extend beyond the agreement's term. It is important to carefully review Sections 16 and 17 of the Franchise Agreement to fully understand the scope and duration of these surviving obligations.