Within how many days after the termination or expiration of the Aw franchise agreement must all outstanding amounts be paid to the company?
Aw Franchise · 2025 FDDAnswer from 2025 FDD Document
- 16.1 Payment of Amounts Owed to the Company. You agree to pay to us within ten (10) days after the effective date of termination or expiration (without renewal) of this Agreement such royalty fees, marketing fund contributions, service charges due us on any of the foregoing and all other amounts owed to us and our affiliates which are then unpaid. You must furnish a complete accounting of all such amounts owed to us and our affiliates with the payment.
Source: Item 22 — CONTRACTS (FDD pages 39–40)
What This Means (2025 FDD)
According to Aw's 2025 Franchise Disclosure Document, a franchisee must pay all outstanding amounts to the company within ten days after the termination or expiration of the franchise agreement. This includes royalty fees, marketing fund contributions, service charges, and any other amounts owed to Aw and its affiliates. The franchisee is also required to provide a complete accounting of all such amounts with the payment.
This requirement ensures that Aw receives all outstanding payments promptly after a franchise agreement ends. It is a fairly standard practice in franchising to require franchisees to settle all financial obligations upon termination or expiration of the agreement. The quick turnaround time protects Aw's revenue stream and simplifies the closing process.
For a prospective Aw franchisee, this means being prepared to settle all accounts within this short timeframe. Failure to do so could result in further action from Aw to recover the debt, potentially including legal action and additional costs. Franchisees should maintain accurate financial records to ensure a smooth and timely final payment.