After the termination or expiration of the franchise agreement, can an Aw franchisee take any action that derogates our claimed rights in and to the Marks?

According to Aw's 2025 Franchise Disclosure Document, a franchisee is prohibited from taking any action that could harm or diminish Aw's rights to its trademarks, both during the term of the Franchise Agreement and after its termination or expiration. Specifically, the franchisee cannot make any statements that question the validity of Aw's trademarks, challenge Aw's ownership of the trademarks, or take any actions that could disparage or dilute Aw's trademark rights. This restriction is in place to protect the brand's identity and reputation.

Upon termination or expiration of the franchise agreement, the franchisee must also discontinue using the Papa Ray's Pizza Restaurant name, or any association with Aw. The franchisee is obligated to return or destroy all materials bearing Aw's marks, including signs and promotional items. Additionally, the franchisee must cancel any registrations, such as 'doing business as' names, that relate to the use of Aw's marks. The franchisee is also responsible for notifying the phone company and listing agencies about the termination of their right to use any phone numbers and directory listings associated with Aw's marks, and authorize the transfer of these to Aw.

These stipulations ensure that upon the end of the franchise relationship, the franchisee does not continue to benefit from Aw's brand recognition or create confusion in the marketplace. This is a standard practice in franchising, as franchisors need to maintain control over their brand and prevent former franchisees from misrepresenting themselves as part of the franchise system. The restrictions protect Aw's investment in its brand and ensure consistency across all franchise locations, even after a franchise agreement concludes.