After the termination or expiration of the franchise agreement, can an Aw franchisee take any action that dilutes our claimed rights in and to the Marks?
Aw Franchise · 2025 FDDAnswer from 2025 FDD Document
You must not, at any time during the term of this Agreement or after its termination or expiration do any of the following: (1) make any oral or written representation or admission that any of the Marks is in any way invalid or infringes the rights of any person or is open to any other form of attack, (2) contest the validity or ownership of any of the Marks or assist any other person in contesting the validity or ownership of the Marks, or (3) take any action that derogates, tarnishes or dilutes our claimed rights in and to the Marks.
Source: Item 22 — CONTRACTS (FDD pages 39–40)
What This Means (2025 FDD)
According to Aw's 2025 Franchise Disclosure Document, franchisees are prohibited from taking any actions that could harm or weaken Aw's rights to its trademarks, both during the term of the agreement and after its termination or expiration. Specifically, franchisees cannot make any representations that the Marks are invalid, contest the ownership, or take any action that could tarnish or dilute Aw's rights to the Marks. This restriction is in place to protect the brand's identity and reputation.
Upon termination or expiration of the franchise agreement, franchisees must also cease using anything associated with Aw. This includes not identifying themselves as a current or former Papa Ray's Pizza Restaurant, franchisee, or licensee of Aw. They must also avoid using the Marks or anything similar, including trade names, trademarks, service marks, trade dress, domain names, or other commercial symbols that suggest a connection with Aw. Franchisees are required to return or destroy all signs, promotional materials, and other items containing the Marks, and cancel any registrations related to the use of the Marks.
Additionally, franchisees must notify the telephone company and listing agencies about the termination of their right to use any phone numbers and directory listings associated with the Marks, authorizing the transfer of these to Aw. They must also assign any domain name registrations, websites, and social media presences using the Marks to Aw or its designee. These measures ensure that Aw maintains control over its brand and online presence, preventing any potential confusion or misuse of its Marks after a franchise agreement ends.
These obligations are designed to protect Aw's brand and prevent former franchisees from unfairly competing or misrepresenting their affiliation with the franchise. Failure to comply with these requirements could result in legal action and financial penalties for the former franchisee.