What is the consequence if an Aw franchisee makes an unauthorized use of the Marks?
Aw Franchise · 2025 FDDAnswer from 2025 FDD Document
and are not intended to control the day-to-day operations of the Papa Ray's Pizza Restaurant, since you are solely responsible for the day-to-day operations and the Papa Ray's Pizza Restaurant will be under your control at all times.
7. MARKS
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).
You must not, at any time during the term of this Agreement or after its termination or expiration do any of the following: (1) make any oral or written representation or admission that any of the Marks is in any way invalid or infringes the rights of any person or is open to any other form of attack, (2) contest the validity or ownership of any of the Marks or assist any other person in contesting the validity or ownership of the Marks, or (3) take any action that derogates, tarnishes or dilutes our claimed rights in and to the Marks.
All provisions of this Agreement applicable to the Marks will apply to any additional trademarks, service marks, commercial symbols, designs, artwork and logos we may authorize you to use during the term of this Agreement.
Source: Item 22 — CONTRACTS (FDD pages 39–40)
What This Means (2025 FDD)
According to Aw's 2025 Franchise Disclosure Document, franchisees receive a limited right to use Aw's trademarks (the Marks) solely for operating their Papa Ray's Pizza Restaurant in compliance with the franchise agreement. Any unauthorized use of the Marks constitutes an infringement of Aw's rights. The agreement specifies that all goodwill established through a franchisee's use of the Marks inures exclusively to Aw's benefit, and the agreement does not grant the franchisee any ownership or other interests in the Marks beyond the right to operate a Papa Ray's Pizza Restaurant in compliance with the agreement.
Specifically, the franchise agreement states that franchisees cannot make any claims that the Marks are invalid or infringe on another party's rights. They also cannot contest Aw's ownership of the Marks or take any action that could damage or dilute Aw's rights to the Marks.
Furthermore, the franchise agreement outlines that making any unauthorized use of the Marks is grounds for termination of the agreement. This includes using the Marks in any way not expressly authorized by Aw, or using them in connection with the sale of unauthorized products or services. Franchisees must also use the Marks prominently and in the manner prescribed by Aw, including on signs, forms, and advertising materials. Failing to comply with these requirements could lead to the termination of the franchise agreement.