What is the timeframe for an Aw franchisee to comply with directions to modify or discontinue the use of a Mark?
Aw Franchise · 2025 FDDAnswer from 2025 FDD Document
- 7.5 Discontinuance of Use of Marks. If it becomes advisable at any time, in our sole discretion, for you to modify or discontinue use of any Mark or for your Papa Ray's Pizza Restaurant to use one or more additional or substitute trademarks, service marks, trade dress or domain names, you agree to comply with our directions to modify or otherwise discontinue the use of the Mark, or use one or more additional or substitute trademarks, service marks, trade dress or domain names, within a reasonable time after our notice to you at your expense. If we require you to modify or discontinue use of any Mark, we have no obligations or liability to you for your actual expenditures or other costs you incur in order to comply with this obligation.
Source: Item 22 — CONTRACTS (FDD pages 39–40)
What This Means (2025 FDD)
According to Aw's 2025 Franchise Disclosure Document, if Aw determines it advisable for a franchisee to modify or discontinue the use of any Mark, the franchisee must comply with Aw's directions within a reasonable time after receiving notice. This includes modifying or discontinuing the use of the Mark, or using additional or substitute trademarks, service marks, trade dress, or domain names. The franchisee is responsible for these expenses.
This means that Aw has the right to change its branding and require franchisees to update their businesses accordingly. The term "reasonable time" is subjective and could potentially lead to disputes. It is important to note that Aw bears no obligation or liability to reimburse the franchisee for actual expenditures or other costs incurred to comply with these changes.
Prospective Aw franchisees should consider the potential costs and disruptions associated with rebranding when evaluating this franchise opportunity. It would be prudent to discuss with Aw what constitutes a "reasonable time" for compliance and to understand the potential frequency and scope of required changes to the Marks. Additionally, franchisees should factor in the cost of potential future re-branding when considering the overall investment.