What is the consequence if an Aw franchisee fails to comply with local building codes?
Aw Franchise · 2025 FDDAnswer from 2025 FDD Document
l only be used for the operation of a Papa Ray's Pizza Restaurant; and (vii) provides that the lessor will not lease other premises in the same shopping center to a competing business.
- 4.3 Construction Specifications. We will furnish specifications reflecting our requirements for interior and exterior design, decoration, fixtures, furniture, layout, equipment, and signs for Papa Ray's Pizza Restaurants. It will then be your responsibility to comply with all ordinances, building codes, permit requirements, and lease requirements and restrictions applicable to the Premises. You must advise us of any variation from the specifications that are necessary to meet local requirements. You must submit final construction plans and specifications to us for our approval before you begin construction at the Premises, and must construct the Papa Ray's Pizza Restaurant in accordance with those approved plans.
- 4.4 Development of the Papa Ray's Pizza Restaurant. You agree at your own expense to do the following: (1) secure all financing required to fully develop the Papa Ray's Pizza Restaurant; (2) obtain all required building, utility, sign, and business permits and licenses and any other required permits and licenses;
Source: Item 22 — CONTRACTS (FDD pages 39–40)
What This Means (2025 FDD)
According to Aw's 2025 Franchise Disclosure Document, it is the franchisee's responsibility to comply with all ordinances, building codes, permit requirements, and lease requirements applicable to the premises. Aw will furnish specifications reflecting their requirements for interior and exterior design, decoration, fixtures, furniture, layout, equipment, and signs for Papa Ray's Pizza Restaurants. The franchisee must also advise Aw of any variations from the specifications that are necessary to meet local requirements and submit final construction plans and specifications to Aw for approval before beginning construction. The franchisee must construct the Papa Ray's Pizza Restaurant in accordance with those approved plans.
Furthermore, the agreement can be terminated if the franchisee causes a threat or danger to public health or safety resulting from the construction, maintenance, or operation of their Papa Ray's Pizza Restaurant. If Aw or a governmental authority provides written or oral notice of such a threat or danger, the franchisee must immediately cease any activity causing the threat and complete the cure of such breach within 24 hours. Failure to comply within this timeframe can result in immediate termination of the agreement.
This means that Aw franchisees must ensure strict adherence to building codes and safety regulations during construction and operation. Failure to do so not only poses a safety risk but also carries the significant risk of immediate termination of the franchise agreement. Prospective franchisees should carefully review all construction specifications and local requirements, and maintain open communication with Aw to address any necessary variations or concerns.