Within what timeframe must the Aw franchise or ownership interest be assigned to an approved buyer after the franchisee's death or disability?

According to Aw's 2025 Franchise Disclosure Document, in the event of the death or disability of a franchisee, the franchise or ownership interest must be assigned to an approved buyer within 6 months. This requirement is detailed in Section 14.4 of the franchise agreement, as summarized in Item 17. This provision ensures that the Aw franchise continues to operate under approved management even in unforeseen circumstances.

For a prospective Aw franchisee, this means that in the event of death or disability, their estate or legal representative has a limited time frame to find a buyer who meets Aw's approval. This buyer must be able to take over the franchise operations and maintain the standards set by Aw. The 6-month timeframe could present a challenge, as finding a qualified and approved buyer may take time, and the estate would need to act quickly to avoid potential breaches of the franchise agreement.

It is important for potential Aw franchisees to understand the implications of this clause and to consider it when making estate planning decisions. Franchisees should discuss with their legal and financial advisors how to ensure a smooth transition of the business in the event of death or disability, taking into account Aw's requirements for buyer approval and the 6-month timeframe for assignment. This may involve identifying potential buyers in advance or establishing a plan for quickly finding and approving a buyer if the need arises.