Can an Aw franchisee continue to operate their Papa Ray's Pizza Restaurant as a non-franchised facility after termination?

According to Aw's 2025 Franchise Disclosure Document, a franchisee is not allowed to continue operating their Papa Ray's Pizza Restaurant as a non-franchised facility after the termination or expiration of the franchise agreement. Specifically, the franchisee must immediately cease operations of the Papa Ray's Pizza Restaurant, whether as a franchised or non-franchised entity. This restriction is clearly outlined in the franchise agreement, ensuring that upon termination or expiration, the franchisee cannot continue to benefit from the Aw system or brand without authorization.

Furthermore, upon termination or expiration of the agreement, Aw has the option to take over the lease for the restaurant premises. If Aw chooses not to assume the lease, the franchisee must modify the premises to eliminate any association with Aw and its system. This includes removing any distinctive physical or structural features that identify it as a former Aw location. Aw also has the right to request specific additional changes to ensure no association remains.

If the franchisee fails to comply with these requirements, Aw has the right to enter the premises and make the necessary changes at the franchisee's expense. This provision ensures that Aw can protect its brand and prevent any potential confusion or unfair competition that could arise if a former franchisee continued to operate a similar business at the same location without proper de-identification. These measures are in place to maintain the integrity of the Aw brand and protect the interests of other franchisees within the system.