What section of the Franchise Agreement discusses non-competition covenants for the Aw franchise?
Aw Franchise · 2025 FDDAnswer from 2025 FDD Document
| OBLIGATION | SECTION IN FRANCHISE AGREEMENT | DISCLOSURE DOCUMENT ITEM |
|---|---|---|
| w. Non-competition covenants | Sections 9.3. and 17 | 17 |
Source: Item 11 — FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS AND TRAINING (FDD pages 22–29)
What This Means (2025 FDD)
According to Aw's 2025 Franchise Disclosure Document, the non-competition covenants within the Franchise Agreement are detailed in Sections 9.3 and 17. Item 17 of the FDD also provides information regarding these covenants.
Non-competition clauses are standard in franchise agreements to protect the franchisor's brand and market. These clauses typically restrict a franchisee from operating a similar business during the term of the franchise agreement and for a certain period after the agreement ends, within a specific geographic area.
Prospective Aw franchisees should carefully review Sections 9.3 and 17 of the Franchise Agreement, as well as Item 17 of the FDD, to fully understand the scope and limitations of these non-competition covenants. Understanding these restrictions is crucial for planning future business activities, both during and after the franchise term.