What factors does Aw consider when determining the boundaries of the Protected Area?
Aw Franchise · 2025 FDDAnswer from 2025 FDD Document
rea"). 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;
Source: Item 22 — CONTRACTS (FDD pages 39–40)
What This Means (2025 FDD)
According to Aw's 2025 Franchise Disclosure Document, the boundaries of the Protected Area are determined by several factors. These include population density, demographics, the amount of existing competition in the market, major topographical features, and any other factors Aw deems relevant to the operation of a Papa Ray's Pizza Restaurant. The minimum radius that will be granted is three (3) miles from the Premises.
Because of these considerations, the size of Protected Areas granted to Aw franchisees may vary. This means that some franchisees may have larger or smaller territories than others, depending on the specific characteristics of their location. A smaller protected area could lead to increased competition from other Aw locations, while a larger area might offer more growth potential.
However, if the Papa Ray's Pizza Restaurant is located within a limited use facility, the Protected Area is limited to that facility. Limited use facilities include locations such as airports, transportation facilities, stadiums, shopping centers, casinos, entertainment facilities, military bases, and college campuses. Aw also retains the right to grant franchises or operate Papa Ray's Pizza Restaurants within limited use facilities, even within a franchisee's Protected Area. This could impact a franchisee's potential customer base and revenue.
Aw also reserves the right to distribute products and services through alternative channels, such as supermarkets, mail order systems, and the Internet, both within and outside the Protected Area. Additionally, Aw can establish other businesses, whether franchised, licensed, or owned by them, that offer similar products and services under different trade names, even within a franchisee's Protected Area. These rights could create competition for franchisees and affect their market share.