What section of the Aw Franchise Agreement contains the covenants that the franchisee must comply with upon termination or expiration?
Aw Franchise · 2025 FDDAnswer from 2025 FDD Document
- 16.8 Covenants. Upon termination or expiration of this Agreement, you shall comply with the covenants contained in Section 17 of this Agreement.
17. POST-TERM COVENANT NOT TO COMPETE.
Source: Item 22 — CONTRACTS (FDD pages 39–40)
What This Means (2025 FDD)
According to Aw's 2025 Franchise Disclosure Document, Section 16.8 of the Franchise Agreement states that upon termination or expiration of the agreement, the franchisee must comply with the covenants contained in Section 17 of the agreement.
Section 17 of the Aw Franchise Agreement is titled "Post-Term Covenant Not to Compete." This section likely outlines the restrictions and obligations a franchisee must adhere to after the franchise agreement ends, such as non-compete clauses, confidentiality agreements, and other stipulations designed to protect Aw's interests.
Prospective Aw franchisees should carefully review Section 17 to understand the full scope of their post-termination obligations. These covenants can significantly impact their ability to engage in similar business activities after leaving the Aw franchise system, so understanding these restrictions is crucial for future planning.