What constitutes a non-curable default that could lead to termination of the Aw franchise?
Aw Franchise · 2025 FDDAnswer from 2025 FDD Document
| PROVISION | SECTION | SUMMARY |
|---|---|---|
| IN FRANCHISE AGREEMENT | ||
| h. "Cause" defined – non-curable defaults | Section 15.1 | Failure to locate site or open Papa Ray's Pizza Restaurant in time required, failure to satisfactorily complete initial training, abandonment, cease operating for 2 or more days, material misrepresentations, conviction of a felony, dishonest or unethical conduct, unauthorized transfers, unauthorized use or disclosure of confidential information or Operations Manual, unauthorized use of Marks, having interest in competing business, creation of a threat to public health or safety not corrected within 24 hours, 3 or more defaults in any 12 month period, failure to attend training or conference 2 or more times, filing for bankruptcy relief. |
Source: Item 17 — RENEWAL, TERMINATION, TRANSFER, AND DISPUTE RESOLUTION (FDD pages 34–36)
What This Means (2025 FDD)
According to Aw's 2025 Franchise Disclosure Document, there are several non-curable defaults that could lead to the termination of the franchise agreement. These defaults, as outlined in Section 15.1 of the franchise agreement, include failing to locate a site or open a Papa Ray's Pizza Restaurant within the required timeframe, failing to satisfactorily complete initial training, or abandoning the restaurant.
Additionally, ceasing operations for two or more days, making material misrepresentations, being convicted of a felony, or engaging in dishonest or unethical conduct are also considered non-curable defaults. Other actions that could trigger immediate termination include unauthorized transfers, unauthorized use or disclosure of confidential information or the Operations Manual, and unauthorized use of Aw's Marks.
Furthermore, having an interest in a competing business, creating a threat to public health or safety that is not corrected within 24 hours, accumulating three or more defaults within a 12-month period, failing to attend required training or conferences two or more times, and filing for bankruptcy relief are also listed as non-curable defaults that Aw may use as grounds for terminating the franchise agreement.