What is the definition of 'Owners' in the context of the Aw franchise agreement?
Aw Franchise · 2025 FDDAnswer from 2025 FDD Document
In this Agreement, we refer to Rayyan Pizza Franchise LLC as "we", "us" or the "Company." We refer to you as "you" or "Franchisee." If you are a corporation, limited liability company or a partnership, you will notice certain provisions that are applicable to your shareholders, members or partners on whose business skill, financial capability and personal character we are relying in entering into this Agreement. Those individuals will be referred to in this Agreement as "Owners."
Source: Item 22 — CONTRACTS (FDD pages 39–40)
What This Means (2025 FDD)
According to Aw's 2025 Franchise Disclosure Document, the term "Owners" refers to the shareholders, members, or partners of a franchisee entity (corporation, limited liability company, or partnership). Aw relies on the business skill, financial capability, and personal character of these individuals when entering into the Franchise Agreement.
This definition is important because certain provisions within the franchise agreement apply specifically to these "Owners." For example, if a franchisee wishes to transfer ownership, Aw assesses the character, skills, and financial resources of the proposed assignee and its owners. Additionally, all Owners of the franchisee entity must execute a Guaranty and Assumption of Obligations, as detailed in Exhibit 2 of the agreement.
This means that if you plan to operate your Aw franchise through a business entity, the individuals who own that entity will be subject to certain requirements and obligations under the franchise agreement. Prospective franchisees should carefully review these provisions and ensure that all Owners are aware of and willing to comply with these requirements.