What must an Aw franchisee do with Confidential Information upon termination or expiration of the franchise agreement?
Aw Franchise · 2025 FDDAnswer from 2025 FDD Document
16.3 Confidential Information. You agree that upon termination 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.
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, franchisees must immediately cease using any Confidential Information in any business or otherwise. Franchisees must also return all copies of the Operations Manual, any proprietary software, and other materials containing Aw's proprietary information that were loaned to them.
Aw defines Confidential Information as unique and proprietary information and trade secrets. This includes methods, techniques, formats, specifications, procedures, information, systems, and knowledge related to the development, operation, and franchising of Papa Ray's Pizza Restaurants. It also covers sources of supply, ordering and inventory control methods, recipes, sales and profit performance data, test program results, advertising and marketing programs, restaurant construction and layout, and training methods.
Furthermore, the franchisee is obligated to maintain the absolute confidentiality of the Confidential Information even after the termination or expiration of the franchise agreement. They are prohibited from using it in any other business or capacity and must not make unauthorized copies of any Confidential Information disclosed in written form. Franchisees must also implement reasonable procedures to prevent unauthorized use or disclosure of the Confidential Information, including imposing restrictions on disclosure to their employees and using non-disclosure and/or non-competition agreements for employees as prescribed by Aw.