In the context of Aw franchise renewal, what does 'expeditiously develop the substitute premises' mean?
Aw Franchise · 2025 FDDAnswer from 2025 FDD Document
Subject to the provisions of Paragraph 3.2 below, and if you have substantially complied with all provisions of this Agreement and any other agreement between us, then on expiration of the initial term of the Franchise, you will have the right to renew the Franchise for one (1) additional successive term of ten (10) years if: (1) you maintain possession of the Premises, or (2) you are unable to maintain possession of the Premises or in our judgment the Papa Ray's Pizza Restaurant should be relocated, and you secure an approved substitute premises and agree to expeditiously develop the substitute premises in compliance with specifications and standards then applicable under new or renewal franchises for Papa Ray's Pizza Restaurants.
Source: Item 22 — CONTRACTS (FDD pages 39–40)
What This Means (2025 FDD)
According to Aw's 2025 Franchise Disclosure Document, to 'expeditiously develop the substitute premises' means that if a franchisee is unable to maintain possession of their current Papa Ray's Pizza Restaurant location, or if Aw believes the restaurant should be relocated, the franchisee must secure an approved substitute premises and promptly develop it according to the specifications and standards applicable to new or renewal franchises. This is a condition for renewing the franchise for an additional ten-year term.
This requirement means a franchisee seeking renewal needs to act quickly to find a new location that meets Aw's approval and then develop that location to Aw's current standards if they cannot stay at their existing location. This could involve significant investment and time to ensure the new location aligns with Aw's brand image and operational requirements. The franchisee is responsible for all costs associated with securing and developing the new site.
Aw retains significant control over the process, including site approval and construction standards. The franchisee must adhere to Aw's specifications for interior and exterior design, decoration, fixtures, furniture, layout, equipment, and signs. This ensures uniformity across all Aw locations and maintains brand consistency. The franchisee must also comply with all local ordinances, building codes, permit requirements, and lease restrictions.
In practical terms, 'expeditiously develop' means the franchisee must prioritize the project, allocate sufficient resources, and work efficiently to minimize any disruption to their business. Delays in securing or developing the new premises could jeopardize the franchise renewal. Franchisees should maintain open communication with Aw throughout the process to ensure compliance and avoid potential issues.