During the term of the Aw franchise, where is involvement in a competing business prohibited?
Aw Franchise · 2025 FDDAnswer from 2025 FDD Document
| PROVISION | SECTION IN FRANCHISE AGREEMENT | SUMMARY |
|---|---|---|
| q. Non-competition covenants | Section 9.3 | No involvement in competing business |
| during the term of the franchise | anywhere. |
Source: Item 17 — RENEWAL, TERMINATION, TRANSFER, AND DISPUTE RESOLUTION (FDD pages 34–36)
What This Means (2025 FDD)
According to Aw's 2025 Franchise Disclosure Document, Item 17 outlines the non-competition covenants during the franchise term. Specifically, Section 9.3 of the Franchise Agreement states that franchisees are prohibited from involvement in any competing business anywhere during the term of the franchise.
This means that as an Aw franchisee, you are restricted from participating in any competing business, regardless of its location, throughout the duration of your franchise agreement. This restriction is quite broad, as it doesn't limit the non-compete to a specific geographic area but applies universally.
It is important for prospective franchisees to fully understand the scope of this non-compete clause. This could potentially impact other business ventures or investments a franchisee may have or plan to pursue. Franchisees should seek legal counsel to fully understand the implications of this restriction before entering into a franchise agreement with Aw.