Who is responsible for the costs associated with enforcing the post-term covenant not to compete for an Aw franchise?

According to Aw's 2025 Franchise Disclosure Document, the franchisee is responsible for covering all costs and expenses that Aw incurs while enforcing the post-term covenant not to compete. These costs include reasonable attorneys' and experts' fees. This obligation falls on the franchisee if they violate the terms of the non-compete agreement after the franchise agreement has been terminated or has expired.

This means that if a former Aw franchisee breaches the post-term non-compete agreement, Aw can take legal action to enforce the covenant. The franchisee will be liable for all legal costs Aw incurs, including lawyer and expert witness fees. This could potentially amount to a significant financial burden for the former franchisee, depending on the complexity and length of the legal proceedings.

It is important for prospective Aw franchisees to fully understand the scope and implications of the post-term non-compete agreement, as well as the potential costs associated with its enforcement. Franchisees should carefully consider these factors before signing the franchise agreement, as these costs could be substantial if they decide to operate a competing business after their franchise agreement ends. This is a fairly standard clause in franchise agreements across various industries.