What can Aw do on expiration or termination of the Franchise Agreement regarding the leased premises?
Aw Franchise · 2025 FDDAnswer from 2025 FDD Document
s of the Operations Manual, any proprietary software and other materials containing our proprietary information which have been loaned to you by us.
- 16.4 Cease Operations. Upon termination or expiration of this Agreement, you shall immediately cease to operate your Papa Ray's Pizza Restaurant under this Agreement, either as a franchised or as a non-franchised facility.
- 16.5 Assignment of Lease. Upon termination or expiration of this Agreement, at our option you shall immediately assign to us your interest in any lease then in effect for the premises of your Papa Ray's Pizza Restaurant, as you agreed to in the Exhibit 3 Collateral Assignment of Lease.
- 16.6 De-Identification of Premises. Upon termination or expiration of this Agreement, you agree, in the event you continue to operate or subsequently begin to operate any other business (subject to any restrictions against doing so provided in this Agreement), not to use any reproduction, counterfeit, copy or colorable imitation of the Marks either in connection with such other business or the promotion thereof, which is likely to cause confusion, mistake or deception, or which is likely to dilute our exclusive rights in and to the Marks and further agree not to utilize any designation of origin or description or representation which falsely suggests or represents an association or connection with us so as to constitute unfair competition. If we do not opt to take assignment of the lease for the Premises upon the expiration or termination of this Agreement, you shall immediately make such
modifications or alterations to the Premises as may be necessary to prevent any association between us or the System and any business thereon subsequently operated by you or others, and shall make such specific additional changes thereto as we may reasonably request for that purpose, including, without limitation, removal of all distinctive physical and structural features identifying the System. In the event you fail or refuse to comply with the requirements of this Paragraph, we shall have the right to enter upon the premises, without being guilty of trespass or any other tort, for the purpose of making or causing to be made such changes as may be required at your expense, which expense you agree to pay upon demand.
- 16.7 Purchase of Assets. Upon termination or expiration of this Agreement, we shall have the right (but not the duty), to be exercised by notice of intent to do so within thirty (30) days after termination or expiration, to purchase for cash any or all fixtures, furniture, equipment, inventory, products, supplies, signs, and all items bearing the Marks, at your cost or fair market value, whichever is less. If the parties cannot agree on fair market value within a reasonable time, an independent appraiser acceptable to you shall be designated by us, and the designated appraiser's determination shall be binding.
Source: Item 22 — CONTRACTS (FDD pages 39–40)
What This Means (2025 FDD)
According to Aw's 2025 Franchise Disclosure Document, upon the termination or expiration of the Franchise Agreement, Aw has specific rights regarding the leased premises of the Papa Ray's Pizza Restaurant. Aw has the option to require the franchisee to assign their interest in the lease to Aw. This is typically outlined in Exhibit 3, the Collateral Assignment of Lease. Aw can exercise this option if the franchisee defaults under the lease or the Franchise Agreement, or upon the agreement's expiration or termination.
If Aw does not choose to take over the lease, the franchisee is obligated to modify the premises to eliminate any association with Aw or the Papa Ray's Pizza Restaurant system. This includes removing distinctive physical and structural features that identify the system. Should the franchisee fail to make these required changes, Aw has the right to enter the premises and make the necessary modifications at the franchisee's expense.
Furthermore, Aw can stipulate certain terms in the lease agreement, such as ensuring the lease term matches the franchise agreement's initial and renewal terms, receiving notice of any franchisee defaults, and having the right to cure those defaults. The lease should also permit the use of Aw's required signs and restrict the premises to only operating a Papa Ray's Pizza Restaurant, preventing the lessor from leasing to competing businesses in the same shopping center. Aw also has the right to enter the leased premises and remove all signs and items identifying the Marks.