What are some examples of limited use facilities where Aw may grant a franchise?
Aw Franchise · 2025 FDDAnswer from 2025 FDD Document
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;
Source: Item 22 — CONTRACTS (FDD pages 39–40)
What This Means (2025 FDD)
According to Aw's 2025 Franchise Disclosure Document, Aw reserves the right to grant franchises or operate Papa Ray's Pizza Restaurants within limited use facilities, even within a franchisee's protected area. A "limited use facility" includes locations such as airports, railroad stations, transportation facilities, stadiums, racetracks, sports facilities, enclosed shopping centers, casinos, theaters, auditoriums, amusement parks, entertainment facilities, military bases, and college campuses. These are considered "captive locations."
This reservation of rights means that a franchisee's protected area may not apply to locations within these limited use facilities. Aw retains the discretion to establish franchises in these locations, regardless of any existing franchisee's protected territory. This could potentially lead to competition for the franchisee within their general market area, although the limited-use facility is likely to draw from a different customer base.
For a prospective Aw franchisee, this clause highlights the importance of understanding the specific boundaries of the protected area and the potential for Aw to establish additional locations in non-traditional venues within or near that area. It is essential to consider the potential impact of these limited use facilities on the franchisee's business and revenue projections. Franchisees should inquire about Aw's strategy for developing such locations and how it might affect their operations.