What rights does Aw have upon expiration or termination of the franchise agreement regarding signs and identifying marks?
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;
- (c) promptly take such action as may be required to cancel all fictitious or assumed name, "doing business as" or equivalent registrations relating to your use of the Marks;
- (d) promptly notify the telephone company and all listing agencies of the termination or expiration of your right to use any telephone number and any telephone directory listings associated with the Marks and to authorize transfer of same to or at our direction. You acknowledge that as between the Company and you, we have the sole right to and interest in all telephone numbers and directory listings associated with the Marks, and you authorize us, and by execution of the Exhibit 4 Collateral Assignment of Telephone Number have appointed us and any of our officers as your attorney-in-fact, to direct the telephone company and all listing agencies to transfer same to us or at its direction, should you fail or refuse to do so, and the telephone company and all listing agencies may accept such direction or this Agreement as conclusive of our exclusive rights in such telephone numbers and directory listings and its authority to direct their transfer;
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, Aw has specific rights regarding the use of its marks and identifying symbols. The franchisee cannot identify themselves or any business as a current or former Papa Ray's Pizza Restaurant or use Aw's marks or any similar imitations.
The franchisee is obligated to promptly return or destroy all signs, promotional materials, and other items containing Aw's marks, as specified by Aw. They must also cancel any registrations related to the use of Aw's marks, such as "doing business as" names. Additionally, the franchisee must notify the telephone company and listing agencies about the termination of their right to use any phone numbers and directory listings associated with Aw's marks, authorizing the transfer of these to Aw.
Aw also has the option to purchase the franchisee's assets, including signs and items bearing Aw's marks, at the franchisee's cost or fair market value, whichever is less. If the lease for the restaurant premises is not assigned to Aw, the franchisee must modify the premises to remove any association with Aw and the Papa Ray's Pizza system. Overall, these stipulations ensure that upon termination or expiration, the franchisee completely ceases using Aw's branding and that Aw maintains control over its trademarks and identifying marks.