What is the definition of 'Protected Area' in the Aw franchise agreement?
Aw Franchise · 2025 FDDAnswer from 2025 FDD Document
As long as this Agreement is in force and effect and you are not in default under any of the terms of this Agreement, we will not establish another Papa Ray's Pizza Restaurant franchise or operate itself or through an affiliate any other Papa Ray's Pizza Restaurant within the protected area described in Exhibit 1 ("Protected Area").
The Protected Area granted to you will be a certain mile radius from the Premises identified in Exhibit 1.
The minimum radius that you will be granted is three (3) miles from the Premises.
The criteria for determining the boundaries of the Protected Area include the population density, demographics, the amount of existing competition in the market, major and/or restricting topographical features which clearly define contiguous areas, and/or other factors we deem relevant to the operation of a Papa Ray's Pizza Restaurant.
As a result of these considerations, the size of Protected Areas granted to franchisees may vary.
Notwithstanding the foregoing, in the event the location of the Premises is within a limited use facility, your Protected Area shall be limited to the limited use facility (as defined below) in which your Papa Ray's Pizza Restaurant is located.
- 2.4 Our Reservation of Rights.
We have the right to grant outside of the Protected Area such other Papa Ray's Pizza Restaurant businesses and franchises as we, in our sole and exclusive discretion, deem appropriate.
We and any affiliates reserve the right, both within and outside of the Protected Area to:
- (a) grant a Papa Ray's Pizza Restaurant franchise or operate ourselves or through an affiliate a Papa Ray's Pizza Restaurant located within a limited use facility.
A limited use facility includes those located within airports, railroad stations or other transportation facilities; stadiums, racetracks or other sport facilities; enclosed shopping centers; casinos; theaters, auditoriums, amusement parks or other entertainment facilities; military bases; and college campuses; and similar types of captive locations;
- (b) distribute products and services which comprise, may in the future comprise or which do not comprise, a part of the System through any alternative distribution channels including,
but not limited to, supermarkets and other retail facilities, mail order systems, the Internet or similar electronic media, using the Marks ("Alternate Distribution Channels");
Source: Item 22 — CONTRACTS (FDD pages 39–40)
What This Means (2025 FDD)
According to Aw's 2025 Franchise Disclosure Document, a 'Protected Area' is defined within Exhibit 1 of the franchise agreement. As long as the franchise agreement is active and the franchisee is not in default, Aw will not establish another Papa Ray's Pizza Restaurant franchise or operate one themselves or through an affiliate within this designated area.
The Protected Area is typically a certain mile radius from the franchisee's premises, with a minimum radius of three miles. The specific boundaries are determined by factors such as population density, demographics, existing competition, topographical features, and other relevant considerations deemed important by Aw. Due to these factors, the size of Protected Areas may vary between franchisees.
However, if the Papa Ray's Pizza Restaurant is located within a limited use facility such as an airport, shopping center, or college campus, the Protected Area is limited to that specific facility. Aw also retains the right to grant other Papa Ray's Pizza Restaurant franchises outside of the Protected Area and reserves the right to operate or franchise locations within limited use facilities, regardless of the Protected Area. Additionally, Aw can distribute products through alternative channels like supermarkets or the internet, both within and outside the Protected Area.