Is the appointment of a manager after the death or disability of an Aw franchisee subject to approval by Aw?
Aw Franchise · 2025 FDDAnswer from 2025 FDD Document
- 14.4 Death or Disability of Franchisee. Upon the death or permanent disability of you (or any of your Owners), the executor or other personal representative of such person must transfer such person's interest within a reasonable time, not to exceed six (6) months from the date of death or permanent disability, to a person approved by us. Such transfers, including, without limitation, transfers by devise or inheritance, will be subject to all the terms and conditions for assignments and transfers contained in Paragraphs 14.2 and 14.3. Failure to transfer such interest within the required period of time will constitute grounds for termination under Section 15. Prior to such transfer, the executor or other personal representative of such person, or the remaining Owners, must appoint a competent manager within a reasonable time, not to exceed thirty (30) days from the date of death or permanent disability. The appointment of this manager is subject to our prior written approval, and this manager must, if requested by us, attend and satisfactorily complete our training program. If Papa Ray's Pizza Restaurant is not being managed by a manager approved by us within thirty (30) days after the death or permanent disability, we are authorized, but we are not required, to immediately appoint a manager to maintain the operations of Papa Ray's Pizza Restaurant. Our appointment of a manager for your Papa Ray's Pizza Restaurant will not relieve you of your obligations under this Agreement, and we will not be liable for any debts, losses, costs or expenses incurred in the operation of your Papa Ray's Pizza Restaurant or to any of your creditors for any products, materials, supplies or services purchased by your Papa Ray's Pizza Restaurant during any period in which it is managed by the manager appointed by us. We have the right to charge a reasonable non-refundable fee for such management services and to cease providing such management services at any time.
Source: Item 22 — CONTRACTS (FDD pages 39–40)
What This Means (2025 FDD)
According to Aw's 2025 Franchise Disclosure Document, if a franchisee (or any of their owners) dies or becomes permanently disabled, their executor or personal representative must transfer the interest to someone Aw approves within six months. Until that transfer happens, a competent manager must be appointed within 30 days of the death or disability.
Importantly, Aw must give prior written approval for this manager. If Aw requests, the manager must also attend and complete Aw's training program satisfactorily. If a manager approved by Aw isn't in place within 30 days of the death or disability, Aw has the option, but not the obligation, to appoint a manager to keep the Aw restaurant running.
If Aw does appoint a manager, the original franchisee remains responsible for all obligations under the franchise agreement. Aw isn't liable for any debts, losses, or expenses incurred during this management period, nor are they liable to the franchisee's creditors. Aw can also charge a reasonable, non-refundable fee for these management services and can stop providing them at any time.