What constitutes 'dishonest or unethical conduct' that could lead to termination of the Aw franchise agreement?

According to Aw's 2025 Franchise Disclosure Document, engaging in any dishonest or unethical conduct that may adversely affect the reputation of the company, the franchisee's Papa Ray's Pizza Restaurant, the System, or the goodwill associated with the Marks can lead to termination of the franchise agreement.

This clause provides Aw with broad discretion to terminate the franchise agreement if a franchisee's actions are deemed dishonest or unethical and negatively impact the brand. The FDD does not specifically define what constitutes 'dishonest or unethical conduct,' leaving room for interpretation by Aw.

For a prospective franchisee, this means that any behavior that could be perceived as damaging to Aw's reputation could potentially lead to termination. It is important to maintain high ethical standards in all business dealings and to avoid any actions that could be viewed as dishonest. Franchisees should seek clarification from Aw regarding specific examples of prohibited conduct to ensure compliance and avoid potential termination.

Given the subjective nature of 'dishonest or unethical conduct,' it would be prudent for a prospective Aw franchisee to discuss this clause with a legal professional to fully understand the potential implications and to seek examples of what Aw considers to be violations of this clause.