Who is the 'Company' referred to in the Aw Guaranty and Assumption of Obligations?
Aw Franchise · 2025 FDDAnswer from 2025 FDD Document
In this Agreement, we refer to Rayyan Pizza Franchise LLC as "we", "us" or the "Company." We refer to you as "you" or "Franchisee." If you are a corporation, limited liability company or a partnership, you will notice certain provisions that are applicable to your shareholders, members or partners on whose business skill, financial capability and personal character we are relying in entering into this Agreement. Those individuals will be referred to in this Agreement as "Owners."
Source: Item 22 — CONTRACTS (FDD pages 39–40)
What This Means (2025 FDD)
According to Aw's 2025 Franchise Disclosure Document, the 'Company' in the Guaranty and Assumption of Obligations refers to Rayyan Pizza Franchise LLC. This is explicitly stated in the introduction of the franchise agreement, clarifying the roles of 'we', 'us', or 'the Company' as Rayyan Pizza Franchise LLC, and 'you' or 'Franchisee' as the franchisee. This definition is crucial for understanding the obligations and rights outlined in the agreement.
The Guaranty and Assumption of Obligations requires the franchisee to guarantee the performance of the franchise agreement. Specifically, owners of the franchisee entity must execute this guaranty, ensuring they are personally bound by the agreement's provisions. This includes both monetary obligations and the responsibility to take or refrain from specific actions as detailed in the agreement.
This requirement has significant implications for prospective Aw franchisees, particularly those operating as a corporation, LLC, or partnership. The personal guaranty means that the franchisor, Aw, can seek recourse directly from the franchisee's owners if the business fails to meet its obligations. This is a common practice in franchising, as it provides an additional layer of security for the franchisor. Franchisees should carefully consider the financial and legal implications of providing a personal guaranty before entering into a franchise agreement with Aw.