Am I subject to non-competition covenants during the term of my Aw franchise?
Aw Franchise · 2025 FDDAnswer from 2025 FDD Document
| PROVISION | SECTION IN FRANCHISE AGREEMENT | SUMMARY |
|---|---|---|
| q. Non-competition covenants | Section 9.3 | No involvement in competing business |
| during the term of the franchise | anywhere. | |
| r. Non-competition covenants after the franchise is terminated or expires | Section 17.1 | No involvement in a competing business for 2 years within 20 miles of your Papa Ray’s Pizza Restaurant or of any other Papa Ray’s Pizza Restaurant (same restrictions apply after assignment). |
Source: Item 17 — RENEWAL, TERMINATION, TRANSFER, AND DISPUTE RESOLUTION (FDD pages 34–36)
What This Means (2025 FDD)
According to Aw's 2025 Franchise Disclosure Document, as a franchisee, you are subject to non-competition covenants during the term of the franchise agreement. Specifically, Section 9.3 of the franchise agreement stipulates that you cannot be involved in any competing business anywhere. This restriction applies throughout the entire duration of your franchise agreement with Aw.
This non-compete obligation means that while you operate an Aw franchise, you are prohibited from owning, operating, or being involved in any other business that competes with Aw. This restriction is broad, applying 'anywhere,' and is not limited to a specific geographic area.
The FDD also states that after the franchise is terminated or expires, you are prohibited from involvement in a competing business for 2 years within 20 miles of your Papa Ray’s Pizza Restaurant or of any other Papa Ray’s Pizza Restaurant. This post-term covenant also applies after assignment. Therefore, it is important to understand the scope and limitations of both the in-term and post-term non-competition covenants before entering into a franchise agreement with Aw.