What specific actions must an Aw franchisee take to 'de-identify' the premises upon termination or expiration of the franchise agreement if they continue to operate another business?
Aw Franchise · 2025 FDDAnswer from 2025 FDD Document
Upon termination or expiration of this Agreement, you agree, in the event you continue to operate or subsequently begin to operate any other business (subject to any restrictions against doing so provided in this Agreement), not to use any reproduction, counterfeit, copy or colorable imitation of the Marks either in connection with such other business or the promotion thereof, which is likely to cause confusion, mistake or deception, or which is likely to dilute our exclusive rights in and to the Marks and further agree not to utilize any designation of origin or description or representation which falsely suggests or represents an association or connection with us so as to constitute unfair competition.
If we do not opt to take assignment of the lease for the Premises upon the expiration or termination of this Agreement, you shall immediately make such
modifications or alterations to the Premises as may be necessary to prevent any association between us or the System and any business thereon subsequently operated by you or others, and shall make such specific additional changes thereto as we may reasonably request for that purpose, including, without limitation, removal of all distinctive physical and structural features identifying the System. In the event you fail or refuse to comply with the requirements of this Paragraph, we shall have the right to enter upon the premises, without being guilty of trespass or any other tort, for the purpose of making or causing to be made such changes as may be required at your expense, which expense you agree to pay upon demand.
Source: Item 22 — CONTRACTS (FDD pages 39–40)
What This Means (2025 FDD)
According to the 2025 Aw Franchise Disclosure Document, upon termination or expiration of the franchise agreement, if the franchisee continues to operate another business at the same location, they must take specific actions to 'de-identify' the premises. The franchisee must not use any imitation of Aw's marks that could cause confusion or dilute Aw's rights to those marks. Additionally, they cannot use any descriptions or representations that falsely suggest an association with Aw, which would constitute unfair competition.
If Aw does not take assignment of the lease, the franchisee must immediately make modifications or alterations to the premises to prevent any association between Aw or its system and the subsequent business. This includes removing all distinctive physical and structural features that identify the Aw system. Aw has the right to request specific additional changes for this purpose, and if the franchisee fails to comply, Aw can enter the premises to make the necessary changes at the franchisee's expense.
In practical terms, this means a former Aw franchisee cannot simply continue operating a similar business at the same location without making significant changes to the building's appearance and branding. They must remove all Aw signage, logos, and design elements, and they may need to alter the building's structure to eliminate any features that are uniquely associated with Aw. Failure to do so could result in Aw taking legal action and charging the franchisee for the cost of de-identification.