What section of the Aw franchise agreement covers the franchisee's obligations upon termination or expiration of the franchise with Aw?
Aw Franchise · 2025 FDDAnswer from 2025 FDD Document
| SECTION | PAGE | |
|---|---|---|
| 16. | RIGHTS AND OBLIGATIONS OF COMPANY AND FRANCHISEE UPON TERMINATION OR EXPIRATION OF THE FRANCHISE | 32 |
Source: Item 22 — CONTRACTS (FDD pages 39–40)
What This Means (2025 FDD)
According to Aw's 2025 Franchise Disclosure Document, Section 16 of the franchise agreement, titled "RIGHTS AND OBLIGATIONS OF COMPANY AND FRANCHISEE UPON TERMINATION OR EXPIRATION OF THE FRANCHISE," outlines the franchisee's obligations upon termination or expiration of the franchise. This section is found on page 32 of the agreement.
Specifically, Section 16 details several key obligations. Upon termination or expiration, the franchisee must pay all outstanding amounts owed to Aw within ten days. The franchisee is also prohibited from using Aw's trademarks or identifying themselves as a current or former franchisee. They must also return or destroy all materials bearing Aw's marks and cancel any registrations related to the use of those marks.
Additionally, Aw has the option to purchase the franchisee's assets, such as fixtures, furniture, and inventory bearing Aw's marks, at the franchisee's cost or fair market value, whichever is less. The franchisee must also comply with the post-term covenant not to compete outlined in Section 17 of the agreement. The franchisee is responsible for all costs Aw incurs to enforce Section 16, and all obligations that naturally survive the termination or expiration of the agreement remain in effect.