What is the consequence of an unauthorized assignment or transfer of the Aw franchise agreement?

According to Aw's 2025 Franchise Disclosure Document, an assignment or transfer of the franchise agreement without prior written approval from Aw constitutes a breach of the agreement. This unauthorized action will not grant any rights or interests in the franchise, the franchisee entity, the Papa Ray's Pizza Restaurant, or its assets to the unauthorized party. This means that if a franchisee attempts to sell, transfer, or assign their franchise to someone else without Aw's explicit consent, the transfer is invalid, and the new party gains no legal standing as a franchisee.

Aw emphasizes that the rights and duties within the franchise agreement are personal to the franchisee. Aw grants the franchise based on the specific character, skills, business acumen, and financial capacity of the approved franchisee and their owners. This highlights the importance Aw places on carefully selecting its franchisees and ensuring they meet certain standards.

For a prospective Aw franchisee, this means that they cannot simply sell or transfer their franchise to anyone they choose. They must obtain Aw's approval, and Aw has the right to ensure that the proposed assignee meets their criteria for franchisees. This protects Aw's brand and ensures that all franchisees meet a consistent standard of quality and competence. Failing to comply with these transfer restrictions can have serious consequences, potentially leading to termination of the franchise agreement.