Under what conditions do the obligations of Aw and the franchisee terminate after the expiration of the Aw Franchise Agreement?
Aw Franchise · 2025 FDDAnswer from 2025 FDD Document
and our agent or representative respecting any and all claims arising out of our operation of your Papa Ray's Pizza Restaurant under this Paragraph 15.4. Nothing herein shall require us to operate your Papa Ray's Pizza Restaurant when you are in default.
16. RIGHTS OF THE COMPANY AND OBLIGATIONS OF FRANCHISEE UPON TERMINATION OR EXPIRATION OF THE FRANCHISE.
- 16.1 Payment of Amounts Owed to the Company. You agree to pay to us within ten (10) days 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;
Source: Item 22 — CONTRACTS (FDD pages 39–40)
What This Means (2025 FDD)
According to Aw's 2025 Franchise Disclosure Document, several obligations continue even after the franchise agreement expires or is terminated without renewal. Both Aw and the franchisee have duties that persist beyond the agreement's end date. These continuing obligations remain in effect until they are either fulfilled or naturally expire.
Specifically, the franchisee must pay all outstanding amounts owed to Aw, including royalty fees, marketing fund contributions, and service charges, within ten days of the termination or expiration date. The franchisee must also provide a complete accounting of all such amounts with their payment. The franchisee is also obligated to stop using Aw's confidential information and return all copies of the Operations Manual, proprietary software, and other materials containing Aw's proprietary information.
Additionally, the franchisee must cease operating their Papa Ray's Pizza Restaurant immediately upon termination or expiration, whether as a franchised or non-franchised entity. They must also remove all signs and materials bearing Aw's trademarks and notify the phone company and listing agencies to transfer any phone numbers and directory listings associated with the Aw brand back to the company. These post-termination covenants are typical in franchising to protect the brand and ensure a smooth transition.