Can an Aw franchisee use a domain name that suggests association with Aw after termination?
Aw Franchise · 2025 FDDAnswer from 2025 FDD Document
s after the effective date of termination or expiration (without renewal) of this Agreement such royalty fees, marketing fund contributions, service charges due us on any of the foregoing and all other amounts owed to us and our affiliates which are then unpaid. You must furnish a complete accounting of all such amounts owed to us and our affiliates with the payment.
- 16.2 The Marks. You (and your Owners) agree that after the termination or expiration (without renewal) of this Agreement you will:
- (a) not directly or indirectly at any time or in any manner identify yourself or any business as a current or former Papa Ray's Pizza Restaurant, or as a franchisee or licensee of or as otherwise associated with us, or use the Marks, any colorable imitation thereof or other indicia of a Papa Ray's Pizza Restaurant in any manner or for any purpose, or utilize for any purpose any trade name, trademark, service mark, trade dress, domain name, or other commercial symbol that suggests or indicates a connection or association with us;
- (b) promptly return to us or destroy (whichever we specify) all signs, sign-faces, promotional and advertising materials and other materials containing the Marks or otherwise identifying or relating to a Papa Ray's Pizza Restaurant;
Source: Item 22 — CONTRACTS (FDD pages 39–40)
What This Means (2025 FDD)
According to Aw's 2025 Franchise Disclosure Document, a franchisee cannot use a domain name that suggests association with Aw after the termination or expiration of the franchise agreement. Specifically, the franchisee must assign to Aw all rights and interests in any domain name registrations, websites, and social media presences that use Aw's marks. The franchisee is also required to notify the necessary parties about the termination of their license to use Aw's marks, which includes the right to use any domain name, website, or other online presence that uses those marks. This notification authorizes the transfer of these assets to Aw or its designee.
This provision ensures that upon termination, the franchisee severs all ties with the Aw brand online. This prevents potential customer confusion and protects Aw's brand identity. The franchisee must take immediate action to transfer all domain names, websites, and social media accounts using Aw's marks to the company. Failure to comply with these requirements could result in legal action by Aw to enforce the terms of the franchise agreement.
This requirement is fairly standard in franchising. Franchisors typically want to maintain strict control over their brand and online presence. By preventing former franchisees from using domain names or social media accounts that suggest an ongoing association with the brand, Aw can ensure consistency and prevent any potential damage to its reputation. Prospective franchisees should be aware of this obligation and factor it into their business planning, particularly if they intend to continue operating a similar business after the franchise agreement ends.