What constitutes a 'bona fide program' to complete required maintenance or refurbishing of the Papa Ray's Pizza Restaurant, according to Aw?
Aw Franchise · 2025 FDDAnswer from 2025 FDD Document
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and to protect the goodwill of the Marks and all Papa Ray's Pizza Restaurants. You also acknowledge that a fundamental requirement of this Franchise Agreement is your adherence to the System and all of our uniform standards, specifications and procedures and policies.
11.2 Use, Condition and Appearance of the Premises. You agree that:
- (a) neither the Papa Ray's Pizza Restaurant nor the Premises will be used for any purpose other than the operation of a Papa Ray's Pizza Restaurant in compliance with this Agreement;
- (b) you will maintain the condition and appearance of the Papa Ray's Pizza Restaurant, its fixtures, furniture, equipment, and signs and the Premises in accordance with our standards and consistent with the image of a Papa Ray's Pizza Restaurant as an efficiently operated business offering high quality products and services and observing the highest standards of efficient and courteous service; In that connection, you agree to take, without limitation, the following actions during the term of this Agreement: (1) thorough cleaning, repainting and redecorating of the interior and exterior of the Premises at reasonable intervals; (2) interior and exterior repair of the Premises; and (3) repair or replacement of damaged, worn out or obsolete fixtures, furniture, equipment, and signs;
- (c) you will not make any material alterations to the Premises or to the appearance of the Papa Ray's Pizza Restaurant, as originally developed, without our prior written approval. If you do so, we have the right, at your expense, to rectify alterations we have not previously approved;
- (d) you will replace or add new equipment and fixtures when we reasonably specify in order to meet changing standards or accommodate new services, new products and new methods of providing and displaying the new products and services;
- (e) on notice from us at reasonable intervals, but not more often than once every five (5) years, you will upgrade, refurbish and redecorate the Premises, at your expense, to conform to the building design, trade dress, color schemes, and presentation of the Marks in a manner consistent with the then-current image for new Papa Ray's Pizza Restaurants or of new or refurbished company-owned or affiliate-owned operations. Such upgrades, refurbishing and redecoration may include, without limitation, structural changes, remodeling, refurnishing, redecoration, installation of new equipment, and modifications to existing improvements. (All actual changes will be subject to our prior written approval); and
- (f) you will place or display at the Premises (interior and exterior) only those signs, emblems, designs, artwork, lettering, logos, and display and advertising materials that we from time to time approve.
If at any time in our reasonable judgment, the general state of repair, appearance or cleanliness of the Premises (including parking areas) or its fixtures, equipment, furniture or signs does not meet our standards, we may notify you, specifying the action you need to take to correct
the deficiency. If you do not initiate within ten (10) days after receipt of our notice, and then continue in good faith and with due diligence, a bona fide program to complete any required maintenance or refurbishing, we have the right, but not the obligation, to do the required maintenance and refurbishing on your behalf, and you agree to reimburse us on demand. The foregoing is in addition to any other remedies we may have.
- 11.3 Authorized Products and Services.
Source: Item 22 — CONTRACTS (FDD pages 39–40)
What This Means (2025 FDD)
According to the 2025 FDD, Aw outlines specific requirements for maintaining and refurbishing a Papa Ray's Pizza Restaurant. Franchisees are responsible for maintaining the restaurant's condition and appearance to meet Aw's standards, ensuring it aligns with the image of a high-quality, efficiently operated business. This includes regular cleaning, repainting, and redecorating of both the interior and exterior at reasonable intervals, as well as repairing any damages to the premises. Franchisees must also repair or replace any damaged, worn-out, or obsolete fixtures, furniture, equipment, and signs. These actions collectively contribute to what Aw considers a 'bona fide program' for upkeep.
Additionally, Aw requires franchisees to upgrade, refurbish, and redecorate the premises periodically, but not more often than once every five years. This is to ensure the restaurant conforms to the current image of new Papa Ray's Pizza Restaurants, including building design, trade dress, color schemes, and presentation of the Marks. These upgrades may involve structural changes, remodeling, refurnishing, redecoration, installation of new equipment, and modifications to existing improvements. All these changes are subject to Aw's prior written approval, ensuring consistency across all franchise locations.
Furthermore, as a condition for renewal of the franchise agreement, franchisees must make reasonable capital expenditures to remodel, upgrade, and redecorate the premises to reflect the then-current image of a Papa Ray's Pizza Restaurant. This includes trade dress, color schemes, layout, fixtures, furniture, equipment, and presentation of the Marks. All remodeling and replacements must adhere to Aw's standards and specifications and receive prior written approval. This obligation is in addition to the ongoing maintenance requirements during the term of the agreement, emphasizing the importance Aw places on maintaining a consistent and appealing brand image. Therefore, a 'bona fide program' is not a single event but an ongoing commitment to uphold Aw's standards through continuous maintenance, periodic upgrades, and adherence to specified guidelines.