What is the Aw franchisee's obligation regarding ceasing operations of their Papa Ray's Pizza Restaurant upon termination or expiration of the franchise agreement?

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. This means the franchisee cannot continue to operate the restaurant under the Aw franchise, nor can they operate it as an independent, non-franchised facility. This obligation is clearly stated in the franchise agreement to ensure a clean break and prevent any further association with the Aw brand after the agreement ends.

In addition to ceasing operations, the franchisee has other obligations. They must settle all outstanding payments, including royalty fees, marketing fund contributions, and service charges, within ten days of the termination or expiration date. The franchisee must also provide a complete accounting of all amounts owed to Aw and its affiliates. Furthermore, the franchisee is prohibited from using Aw's trademarks, service marks, or any other identifying elements of the Papa Ray's Pizza Restaurant brand.

The franchisee is also required to return or destroy all materials containing Aw's trademarks, such as signs and promotional materials. They must also cancel any registrations related to the use of Aw's marks and notify the telephone company and listing agencies to terminate their right to use any telephone numbers and directory listings associated with the Aw brand, authorizing the transfer of these to Aw. These measures ensure that the franchisee completely disassociates from the Aw system to protect the brand's integrity and prevent consumer confusion.

If Aw does not take over the lease for the premises, the franchisee must modify the location to remove any association with Aw and the Papa Ray's Pizza Restaurant system. 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 post-termination obligations are standard in franchising to protect the franchisor's brand and prevent unfair competition.