What is the basis for an Aw franchisee's right to use the Marks?
Aw Franchise · 2025 FDDAnswer from 2025 FDD Document
7.1 Ownership and Goodwill of Marks. You acknowledge that we own the Marks and that your right to use the Marks is derived solely from this Agreement and is limited to your operation of your Papa Ray's Pizza Restaurant pursuant to and in compliance with this Agreement and all applicable specifications, standards and operating procedures we prescribe from time to time during the term of the franchise. Any unauthorized use of the Marks by you will constitute an infringement of our rights in and to the Marks. You acknowledge and agree that all usage of the Marks by you and any goodwill established by your use of the Marks will inure to our exclusive benefit of and that this Agreement does not confer any goodwill or other interests in the Marks on you (other than the right to operate a Papa Ray's Pizza Restaurant in compliance with this Agreement).
Source: Item 22 — CONTRACTS (FDD pages 39–40)
What This Means (2025 FDD)
According to Aw's 2025 Franchise Disclosure Document, the franchisee's right to use Aw's marks is derived solely from the Franchise Agreement. This right is specifically limited to the operation of a Papa Ray's Pizza Restaurant. The franchisee must operate the restaurant in compliance with the agreement and all specifications, standards, and operating procedures that Aw prescribes during the franchise term. Any unauthorized use of the marks constitutes an infringement of Aw's rights.
The agreement emphasizes that Aw owns the marks, and any goodwill established through the franchisee's use of the marks inures exclusively to Aw's benefit. The agreement does not grant the franchisee any goodwill or other interests in the marks, aside from the right to operate a Papa Ray's Pizza Restaurant in compliance with the Franchise Agreement. This means that the franchisee is essentially borrowing the brand's reputation and image for the duration of the agreement, but does not gain any ownership stake in the brand itself.
Upon termination or expiration of the franchise agreement, the franchisee's right to use the marks immediately ceases. The franchisee must then discontinue using the marks and any related identifying materials. This includes refraining from identifying the business as a current or former Papa Ray's Pizza Restaurant and returning or destroying all signs, promotional materials, and other items bearing the marks. The franchisee must also cancel any registrations related to the use of the marks and transfer any associated telephone numbers and listings to Aw.