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What is the potential financial impact on an Aw franchisee if they have to change to an alternative trademark?

Aw Franchise · 2025 FDD

Answer from 2025 FDD Document

We do not have a federal registration for our principal trademark. Therefore, our trademark does not have many legal benefits and rights as a federally registered trademark. If our right to use the trademark is challenged, you may have to change to an alternative trademark, which may increase your expenses.

If it becomes advisable at any time, in our sole discretion, for us and/or you to modify or discontinue use of any Mark and/or use one or more additional or substitute trademarks or service marks, you must comply with our directions within a reasonable time after receiving notice from us at your expense.

We do not know of any existing or possible superior prior rights or infringing uses that could materially affect your use of the Marks in your state.

Source: Item 13 — TRADEMARKS (FDD pages 30–32)

What This Means (2025 FDD)

According to Aw's 2025 Franchise Disclosure Document, if the franchisee is required to change to an alternative trademark, it may increase their expenses. This is due to the fact that Aw does not have a federal registration for their principal trademark, meaning it lacks many legal benefits. A cancellation proceeding in 2013 resulted in the cancellation of their affiliate's registrations for the "Papa Ray's Pizza & Wings" mark and logo. Currently, the mark "Famous Original Ray's Pizza" is in use in New York, but Aw states they do not intend to offer and sell franchises in New York.

Aw retains the right to require franchisees to modify or discontinue the use of any mark, or to use additional or substitute trademarks or service marks. If Aw directs a franchisee to take such actions, the franchisee must comply within a reasonable time after receiving notice from Aw, and the franchisee bears the expense of doing so.

While Aw does not know of any existing or possible superior prior rights or infringing uses that could materially affect a franchisee's use of the marks, the risk remains that a change could be mandated. This could involve costs for new signage, marketing materials, and other branding elements to reflect the new trademark. Franchisees should consider this potential expense when evaluating the Aw franchise opportunity.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.