Does the Aw franchise agreement require the Aw franchisee to cease operating their Papa Ray's Pizza Restaurant immediately upon termination or expiration?
Aw Franchise · 2025 FDDAnswer from 2025 FDD Document
nation or expiration (without renewal) of this Agreement, you will immediately cease to use in any business or otherwise the Confidential Information disclosed to you pursuant to this Agreement and will return to us all copies of the Operations Manual, any proprietary software and other materials containing our proprietary information which have been loaned to you by us.
- 16.4 Cease Operations. Upon termination or expiration of this Agreement, you shall immediately cease to operate your Papa Ray's Pizza Restaurant under this Agreement, either as a franchised or as a non-franchised facility.
- 16.5 Assignment of Lease. Upon termination or expiration of this Agreement, at our option you shall immediately assign to us your interest in any lease then in effect for the premises of your Papa Ray's Pizza Restaurant, as you agreed to in the Exhibit 3 Collateral Assignment of Lease.
- 16.6 De-Identification of Premises. Upon termination or expiration of this Agreement, you agree, in the event you continue to operate or subsequently begin to operate any other business (subject to any restrictions against doing so provided in this Agreement), not to use any reproduction, counterfeit, copy or colorable imitation of the Marks either in connection with such other business or the promotion thereof, which is likely to cause confusion, mistake or deception, or which is likely to dilute our exclusive rights in and to the Marks and further agree not to utilize any designation of origin or description or representation which falsely suggests or represents an association or connection with us so as to constitute unfair competition.
Source: Item 22 — CONTRACTS (FDD pages 39–40)
What This Means (2025 FDD)
According to Aw's 2025 Franchise Disclosure Document, upon termination or expiration of the franchise agreement, the franchisee must immediately cease operating their Papa Ray's Pizza Restaurant, whether as a franchised or non-franchised facility. This means the franchisee cannot continue to run the restaurant under the Aw brand or any other brand immediately after the agreement ends. This obligation is clearly outlined in the franchise agreement.
Additionally, the franchisee is obligated to de-identify the premises to prevent any association between Aw and any subsequent business operated at the location. This includes removing distinctive physical and structural features that identify the System. If the franchisee fails to do so, Aw has the right to enter the premises and make the necessary changes at the franchisee's expense.
These stipulations are standard in franchising to protect the brand's integrity and prevent confusion among customers. By requiring immediate cessation of operations and de-identification of the premises, Aw ensures that the brand's image is not diluted or misrepresented after a franchise agreement ends. This protects Aw's brand recognition and goodwill.