What is the exception regarding the availability of criteria for approving suppliers to franchisees of Aw Papa Ray's Pizza Restaurants?
Aw Franchise · 2025 FDDAnswer from 2025 FDD Document
If you would like to purchase any items from any unapproved supplier, you must submit a written request for approval of the proposed supplier. We will charge you (or the supplier) a non-refundable fee to cover the costs we incur in making this determination and will notify you of our decision within 30 days of our receipt of your request and all materials necessary to make our determination. We will establish procedures for submitting requests for approval of items and suppliers and may impose limits on the number of approved suppliers. Approval of a supplier may be conditioned on reputation, compliance with our specifications, product quality, timely delivery, standards of service and concentration of purchases for the benefit of the franchise system. However, our criteria for approving suppliers are not available to franchisees. We reserve the right to revoke approval of any approved supplier.
Source: Item 8 — RESTRICTIONS ON SOURCES OF PRODUCTS AND SERVICES (FDD pages 19–21)
What This Means (2025 FDD)
According to Aw's 2025 Franchise Disclosure Document, while Aw franchisees can request approval for suppliers not already on the approved list, the specific criteria Aw uses to evaluate and approve these suppliers are not disclosed to franchisees.
This means that while a franchisee can suggest a new supplier and Aw will assess them based on factors like reputation, compliance with specifications, product quality, timely delivery, service standards, and purchase concentration, the exact weighting or thresholds for these criteria remain confidential. Aw retains the right to revoke approval of any supplier at its discretion.
This lack of transparency could make it difficult for franchisees to anticipate which suppliers are likely to be approved or to understand why a particular supplier was rejected. It also gives Aw significant control over the supply chain, as franchisees must purchase certain items from approved suppliers, but do not have full insight into the approval process. Prospective franchisees should inquire about the general categories of criteria used and examples of why suppliers might be rejected to better understand the supplier approval process.