Does Aw consider itself to be the employer of its franchisees or their employees?
Aw Franchise · 2025 FDDAnswer from 2025 FDD Document
ent, and for all costs you reasonably incur in the defense of any such claim in which you are named as a party, so long as you have timely notified us of the claim and have otherwise complied with this Agreement. We have the sole right to defend any such claim.
8. RELATIONSHIP OF THE PARTIES; INDEMNIFICATION
- 8.1 Independent Contractor; No Fiduciary Relationship. Both you and we understand and agree that this Agreement does not create a fiduciary relationship between us, that you and we are independent contractors, and that nothing in this Agreement is intended to make either party a general or special agent, joint venturer, partner, or employee of the other for any purpose whatsoever. You agree to conspicuously identify yourself in all your dealings with customers, suppliers, public officials, employees, and others as the owner of the Papa Ray's Pizza Restaurant pursuant to a Franchise Agreement with us, and agree to place any other notices of independent ownership on your forms, business cards, stationery, advertising, and other materials as we may require from time to time.
- 8.2 No Employment Relationship. You shall prominently display, by posting of a sign within public view, on or in the Premises, a statement that clearly indicates that the Papa Ray's Pizza Restaurant is independently owned and operated by you as our franchisee. You expressly
acknowledge that we are not your employer or an employer of any of your employees. In addition, we are not a joint employer with you. You acknowledge that our training, guidance, advice and assistance, your obligations under this Agreement and the standards, specifications, policies and procedures required by us hereunder and in the Operations Manual are imposed not for the purpose of exercising control over you but rather for the limited purpose of protecting the Marks and Confidential Information, goodwill and brand consistency.
Source: Item 22 — CONTRACTS (FDD pages 39–40)
What This Means (2025 FDD)
According to Aw's 2025 Franchise Disclosure Document, Aw does not consider itself to be the employer of its franchisees or their employees. The FDD states that the franchisee is an independent contractor and is responsible for all employment decisions related to the Papa Ray's Pizza Restaurant. This includes hiring, firing, compensation, and benefits.
Aw emphasizes that the franchisee is solely responsible for managing the restaurant as an independent owner/operator. Aw's training, guidance, and standards are for the purpose of protecting the brand and confidential information, not to control the franchisee's operations. The franchisee must also post a sign indicating that the restaurant is independently owned and operated.
This arrangement is typical in franchising, where franchisees are considered independent business owners. This means that the franchisee is responsible for all aspects of their business, including employment matters and compliance with employment laws. The franchisee also indemnifies Aw against any liabilities arising from the restaurant's operations.