What outstanding payments must be made to Aw before a franchise assignment can be approved?
Aw Franchise · 2025 FDDAnswer from 2025 FDD Document
In addition the following conditions must be met prior to, or concurrently with, the effective date of the assignment:
(b) you have paid such royalty fees, marketing fund contributions, amounts for purchases and any other amounts owed to us or our affiliates which are then due and unpaid;
(f) You or the assignee must have paid us a transfer fee of Nine Thousand Dollars ($9,000.00).
In the event the assignee is an existing franchisee that we have approved for an additional franchise, the transfer fee shall be Five Thousand Dollars ($5,000.00);
Source: Item 22 — CONTRACTS (FDD pages 39–40)
What This Means (2025 FDD)
According to Aw's 2025 Franchise Disclosure Document, before a franchise assignment can be approved, the franchisee must pay all outstanding amounts owed to Aw and its affiliates. This includes any due and unpaid royalty fees, marketing fund contributions, and amounts for purchases. Additionally, either the franchisee or the assignee is responsible for paying a transfer fee of $9,000. However, if the assignee is an existing Aw franchisee approved for an additional franchise, the transfer fee is reduced to $5,000.
This requirement ensures that Aw receives all payments owed before transferring the franchise to a new owner. It protects Aw's financial interests and ensures that the new franchisee starts with a clean financial slate. The transfer fee compensates Aw for the administrative costs associated with the transfer and for evaluating the new franchisee.
Prospective franchisees should be aware of these costs when considering selling their franchise. They should also ensure that all outstanding payments are made before the assignment to avoid any delays or complications in the approval process. Understanding these financial obligations is crucial for a smooth and successful franchise transfer.