Does Aw have to approve the lease or sublease of the premises before it is executed by the franchisee?
Aw Franchise · 2025 FDDAnswer from 2025 FDD Document
- 4.2 Lease of Premises. Any lease or sublease of the Premises must be approved by us before it is executed by you and we can require that certain terms and provisions be included in the lease or sublease.
At our option, we may require that the lease: (i) have a term, with initial and renewal terms, at least equal to the initial term of this Agreement; (ii) be collaterally assigned to us (with the consent of the lessor, if required), by execution of the Collateral Assignment of Lease attached hereto as Exhibit 3 (the assignment may be exercised only upon your default under the lease or this Agreement or the expiration or termination of this Agreement); (iii) provides that the lessor shall give written notice to us (concurrently with you) of any default by you under the lease, and will give us an additional fifteen (15) days to cure any default not cured by you during the cure period and assign the lease to us if defaults are cured by us; (iv) permits the use on the Premises of all signs required by the us for Papa Ray's Pizza Restaurants, subject to applicable local laws, codes and ordinances; (v) provides that on expiration or termination of your Franchise Agreement, we may enter the leased
Source: Item 22 — CONTRACTS (FDD pages 39–40)
What This Means (2025 FDD)
According to Aw's 2025 Franchise Disclosure Document, any lease or sublease of the premises for a Papa Ray's Pizza Restaurant must be approved by Aw before the franchisee executes it. Aw also has the right to require that certain terms and provisions be included in the lease or sublease agreement. This ensures that the location and lease terms align with Aw's standards and protect their interests.
Aw may require the lease to have a term, including initial and renewal terms, that is at least equal to the initial term of the Franchise Agreement. Aw might also require the lease to be collaterally assigned to them, with the lessor's consent if needed. This assignment can be exercised if the franchisee defaults under the lease or Franchise Agreement, or upon expiration or termination of the Franchise Agreement. The lessor must also provide written notice to Aw of any default by the franchisee and allow Aw an additional 15 days to cure the default if the franchisee fails to do so during the cure period.
Furthermore, Aw may stipulate that the lease permits the use of all required signs for Papa Ray's Pizza Restaurants, subject to local laws, codes, and ordinances. The lease should also state that upon expiration or termination of the Franchise Agreement, Aw can enter the premises to remove all signs and items identifying their marks. The premises must be used solely for operating a Papa Ray's Pizza Restaurant, and the lessor must agree not to lease other premises in the same shopping center to competing businesses. These requirements ensure that the franchise location adheres to Aw's brand standards and operational needs, while also protecting Aw's interests in the event of a franchisee default or termination.