What is the consequence if an Aw franchisee fails to obtain all required permits and licenses?
Aw Franchise · 2025 FDDAnswer from 2025 FDD Document
tions 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; (3) construct the Papa Ray's Pizza Restaurant according to the construction plans and specifications we have approved; (4) decorate the Papa Ray's Pizza Restaurant in compliance with plans and specifications we have approved; (5) purchase and install all required fixtures, furniture, equipment, and signs; and (6) purchase an opening inventory of required products, and supplies.
- 4.5 Fixtures, Furniture, Equipment and Signs. You agree to purchase and install, at your expense, all fixtures, furniture, equipment (including required point of sale and/or computer systems) and signs we may direct from time to time and to purchase and use in the development and operation of the Papa Ray's Pizza Restaurant only fixtures, furniture and equipment from approved suppliers and/or that meet our standards and specifications.
- 4.6 Papa Ray's Pizza Restaurant Opening. You agree not to open the Papa Ray's Pizza Restaurant for business until: (1) all of your obligations under Paragraphs 4.1 through 4.5 of this Section 4 have been fulfilled;
Source: Item 22 — CONTRACTS (FDD pages 39–40)
What This Means (2025 FDD)
According to Aw's 2025 Franchise Disclosure Document, a franchisee is responsible for obtaining all required building, utility, sign, and business permits and licenses needed to develop their Papa Ray's Pizza Restaurant. This obligation is part of the franchisee's overall responsibility in developing the restaurant at their own expense.
Aw stipulates that a franchisee cannot open their Papa Ray's Pizza Restaurant for business until they have fulfilled all obligations, including securing all necessary permits and licenses. Specifically, the franchisee must meet several conditions before opening, such as completing construction according to approved plans, purchasing and installing required fixtures and equipment, completing all initial training, paying the initial franchise fee in full, and providing copies of required insurance policies.
Failure to obtain the necessary permits and licenses would prevent the franchisee from fulfilling these pre-opening obligations. Consequently, the franchisee would not be allowed to open the Papa Ray's Pizza Restaurant for business until all requirements are met. This could lead to delays in launching the business and potential financial losses for the franchisee due to ongoing expenses without generating revenue.