Under what circumstances will Aw franchise owners have to reimburse costs and attorney's fees?
Aw Franchise · 2025 FDDAnswer from 2025 FDD Document
| TYPE OF FEE1,3 | AMOUNT | DUE DATE | REMARKS |
|---|---|---|---|
| omissions, our enforcement of this Agreement, our defense of our actions taken under this Agreement or your breach of the Franchise Agreement. | |||
| Costs and Attorney's Fees | Will vary under circumstances | As incurred | You must reimburse us for costs and attorney's fees we incur in actions against you to enforce the Franchise Agreement. |
Source: Item 6 — OTHER FEES (FDD pages 13–16)
What This Means (2025 FDD)
According to Aw's 2025 Franchise Disclosure Document, franchisees may have to reimburse Aw for costs and attorney's fees under specific circumstances. The franchisee is responsible for reimbursing Aw for costs and attorney's fees Aw incurs in actions against the franchisee to enforce the Franchise Agreement. The amount will vary based on the circumstances and will be due as the costs are incurred.
This means that if Aw takes legal action against a franchisee to enforce the terms of the franchise agreement, the franchisee may be required to cover Aw's legal expenses in addition to their own. This could include situations where the franchisee is in breach of contract, violating brand standards, or failing to meet performance expectations. The costs can vary widely depending on the complexity and length of the legal proceedings.
It is important for prospective Aw franchisees to carefully review the franchise agreement and understand the circumstances under which they could be held liable for Aw's legal costs. Franchisees should also maintain open communication with Aw and address any concerns or disputes promptly to avoid potential legal action. Understanding these obligations is crucial for managing the financial risks associated with owning an Aw franchise.