What conditions may Aw impose on the approval of a supplier for Papa Ray's Pizza Restaurants?
Aw Franchise · 2025 FDDAnswer from 2025 FDD Document
If you would like to purchase any items from any unapproved supplier, you must submit a written request for approval of the proposed supplier. We will charge you (or the supplier) a non-refundable fee to cover the costs we incur in making this determination and will notify you of our decision within 30 days of our receipt of your request and all materials necessary to make our determination. We will establish procedures for submitting requests for approval of items and suppliers and may impose limits on the number of approved suppliers. Approval of a supplier may be conditioned on reputation, compliance with our specifications, product quality, timely delivery, standards of service and concentration of purchases for the benefit of the franchise system. However, our criteria for approving suppliers are not available to franchisees. We reserve the right to revoke approval of any approved supplier.
Source: Item 8 — RESTRICTIONS ON SOURCES OF PRODUCTS AND SERVICES (FDD pages 19–21)
What This Means (2025 FDD)
According to Aw's 2025 Franchise Disclosure Document, the approval of a supplier for Papa Ray's Pizza Restaurants is subject to certain conditions. These conditions relate to the supplier's reputation, compliance with Aw's specifications, product quality, timely delivery, standards of service, and the concentration of purchases for the benefit of the franchise system. However, Aw's specific criteria for approving suppliers are not disclosed to franchisees.
This means that while Aw franchisees are required to purchase certain items from approved suppliers, the exact standards used to evaluate and approve these suppliers remain confidential. This gives Aw significant control over the supply chain and ensures consistency across all Papa Ray's Pizza Restaurant locations.
Aw also retains the right to revoke approval of any approved supplier, adding another layer of control. If a franchisee wishes to use an unapproved supplier, they must submit a written request for approval, and either the franchisee or the supplier will be charged a non-refundable fee to cover Aw's costs in making the determination. Aw will then notify the franchisee of their decision within 30 days of receiving the request and all necessary materials. This process ensures that Aw maintains control over the quality and standards of products used in Papa Ray's Pizza Restaurants, but it also means that franchisees may face additional costs and delays if they wish to use a supplier not already approved by Aw.