Is Aw considered a joint employer with its franchisees?
Aw Franchise · 2025 FDDAnswer from 2025 FDD Document
- 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. You are solely responsible for the management of the Papa Ray's Pizza Restaurant as an independent franchise owner/operator.
Source: Item 22 — CONTRACTS (FDD pages 39–40)
What This Means (2025 FDD)
According to Aw's 2025 Franchise Disclosure Document, Aw is not considered a joint employer with its franchisees. The franchise agreement explicitly states that Aw is not the employer of the franchisee or the franchisee's employees. The franchisee is solely responsible for all employment-related decisions and functions at their Papa Ray's Pizza Restaurant.
This means that as a franchisee, you are responsible for hiring, firing, determining compensation, providing benefits, setting work hours, establishing work rules, maintaining records, supervising, and disciplining employees. You must also ensure compliance with all employment laws. Aw's training, guidance, advice, standards, specifications, policies, and procedures are designed to protect the Marks and Confidential Information, goodwill, and brand consistency, not to control the franchisee's management of the restaurant.
This arrangement is typical in franchising, where franchisees are independent business owners. However, franchisees must still adhere to Aw's standards and specifications outlined in the Operations Manual to maintain brand consistency and protect the Marks. Franchisees must also prominently display a statement indicating that the Papa Ray's Pizza Restaurant is independently owned and operated.
Prospective franchisees should understand that while Aw provides a framework for operating the business, the franchisee has significant autonomy in managing their employees. This independence comes with the responsibility of handling all employment-related matters and ensuring compliance with applicable laws.