What is the duration of the initial term that must expire before an Aw franchisee can renew?
Aw Franchise · 2025 FDDAnswer from 2025 FDD Document
another Papa Ray's Pizza Restaurant in the former Protected Area or (iii) terminate this Agreement upon delivery of written notice to you.
3. RENEWAL OF FRANCHISE
- 3.1 Franchisee's Right to Renew. 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. You and your Owners must also comply with our then-current training requirements and attend such training classes as we deem necessary. We will charge you a renewal fee of Two Thousand Five Hundred Dollars ($2,500.00) for services we render to you and expenses we incur in conjunction with the renewal.
- 3.2 Notice of Renewal and Nonrenewal.
Source: Item 22 — CONTRACTS (FDD pages 39–40)
What This Means (2025 FDD)
According to Aw's 2025 Franchise Disclosure Document, a franchisee has the right to renew their franchise for one additional term of ten years, provided they have substantially complied with all the provisions of the franchise agreement and any other agreements with Aw. This right to renew becomes available upon the expiration of the initial franchise term.
To be eligible for renewal, the franchisee must maintain possession of the premises or, if that's not possible or Aw deems relocation necessary, secure an approved substitute premises and develop it according to Aw's current specifications and standards for new or renewal franchises. The franchisee and their owners must also meet Aw's then-current training requirements by attending any necessary training classes.
To exercise the option to renew, the franchisee must provide Aw with written notice of their election to renew at least nine months before the end of the current agreement's term. In conjunction with the renewal, Aw will charge a renewal fee of $2,500 for services rendered and expenses incurred during the renewal process. The renewal is contingent upon the franchisee's continued compliance with all terms and conditions of the agreement up to the expiration date.