Does Aw allow the size of Protected Areas granted to franchisees to vary?
Aw Franchise · 2025 FDDAnswer from 2025 FDD Document
The Protected Area granted to you will be a certain mile radius from the Premises identified in Exhibit 1.
The minimum radius that you will be granted is three (3) miles from the Premises.
The criteria for determining the boundaries of the Protected Area include the population density, demographics, the amount of existing competition in the market, major and/or restricting topographical features which clearly define contiguous areas, and/or other factors we deem relevant to the operation of a Papa Ray's Pizza Restaurant.
As a result of these considerations, the size of Protected Areas granted to franchisees may vary.
Notwithstanding the foregoing, in the event the location of the Premises is within a limited use facility, your Protected Area shall be limited to the limited use facility (as defined below) in which your Papa Ray's Pizza Restaurant is located.
Source: Item 22 — CONTRACTS (FDD pages 39–40)
What This Means (2025 FDD)
According to Aw's 2025 Franchise Disclosure Document, the size of the protected area granted to franchisees can vary. The protected area is typically a certain mile radius from the franchise location, with a minimum radius of three miles. However, the specific boundaries are determined by factors such as population density, demographics, existing competition, topographical features, and other factors Aw deems relevant.
This means that some Aw franchisees may have larger or smaller protected areas than others, depending on the characteristics of their location. For example, a franchisee in a densely populated urban area may have a smaller protected area than a franchisee in a rural area with less competition. This variability can impact the potential market and customer base accessible to each franchisee.
However, if the Papa Ray's Pizza Restaurant is located within a limited use facility, such as an airport or shopping mall, the protected area is limited to that specific facility. Aw also retains the right to grant franchises or operate its own Papa Ray's Pizza Restaurants within limited use facilities, even if they are located within a franchisee's protected area. Aw also reserves the right to distribute products and services through alternative channels, such as supermarkets or the internet, both within and outside of the protected area.