Under what conditions can Aw require a franchisee to use proprietary software?
Aw Franchise · 2025 FDDAnswer from 2025 FDD Document
If we develop proprietary software for use by the franchise system, we can require you to use the software, purchase hardware to support it, enter into a Software License Agreement, and to pay the then current published license fees.
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, Aw can require franchisees to use proprietary software if Aw develops such software for use within the franchise system. If this occurs, Aw can mandate that franchisees purchase the software, acquire the necessary hardware to support it, enter into a Software License Agreement, and pay the then-current published license fees.
This stipulation means that franchisees must be prepared to adopt new software systems if Aw deems it necessary for the franchise's operation. The franchisee will bear the costs associated with the software, hardware, licensing, and any related agreements. This could represent a significant, unplanned expense for franchisees, especially if the new software requires substantial hardware upgrades or incurs high licensing fees.
It is important for prospective Aw franchisees to understand that Aw retains the right to introduce proprietary software and pass the associated costs onto the franchisees. Franchisees should inquire about the potential costs of such software, the frequency of updates, and the typical lifespan of the required hardware to better assess the financial implications. Understanding these potential future costs is crucial for making an informed investment decision.