Does Aw consider the collective character of the franchisee when granting a franchise?
Aw Franchise · 2025 FDDAnswer from 2025 FDD Document
You understand and acknowledge that the rights and duties created by this Agreement are personal to you and we have granted the franchise in reliance upon the individual or collective character, skill, aptitude, attitude, business ability and financial capacity of you (and your Owners). Therefore, except as otherwise provided in Paragraph 14.5 below, neither the franchise, your Papa Ray's Pizza Restaurant or a substantial portion of the assets of your Papa Ray's Pizza Restaurant (or any interest therein) nor any part or all of the ownership of an entity that is the Franchisee may be voluntarily, involuntarily, directly or indirectly, assigned, sold, subdivided, subfranchised or otherwise transferred by you or your Owners (including, without limitation, by merger or consolidation, by issuance of additional securities representing an ownership interest in the Franchisee, or in the event of the death of the Franchisee or an Owner of the Franchisee, by will, declaration of or transfer in trust or the laws of intestate succession) without our prior written
Source: Item 22 — CONTRACTS (FDD pages 39–40)
What This Means (2025 FDD)
According to Aw's 2025 Franchise Disclosure Document, Aw does consider the collective character of the franchisee when granting a franchise. Specifically, the document states that Aw grants franchises based on the "individual or collective character, skill, aptitude, attitude, business ability and financial capacity" of the franchisee and their owners. This indicates that Aw places significant importance on the personal and professional attributes of those who will be operating the franchise.
This consideration extends to the assignment of the franchise as well. If a franchisee wishes to assign their franchise to someone else, Aw requires that the proposed assignee be of "good moral character" and possess sufficient business experience, aptitude, and financial resources. This ensures that any new franchisee meets Aw's standards and is capable of successfully operating the Papa Ray's Pizza Restaurant.
For a prospective franchisee, this means that Aw will conduct a thorough evaluation of their background, skills, and financial resources. It is not just about having the money to invest; Aw wants to ensure that franchisees have the right character and abilities to uphold the brand's reputation and operate a successful franchise. This emphasis on character and competence can be seen as a benefit, as it suggests that Aw is committed to selecting franchisees who are likely to succeed, which can contribute to a stronger and more successful franchise system overall.