Is failure to locate a site in time required a non-curable default for the Aw franchise?
Aw Franchise · 2025 FDDAnswer from 2025 FDD Document
| PROVISION | SECTION | SUMMARY |
|---|---|---|
| IN FRANCHISE AGREEMENT | ||
| h. "Cause" defined – non-curable defaults | Section 15.1 | Failure to locate site or open Papa Ray's Pizza Restaurant in time required, failure to satisfactorily complete initial training, abandonment, cease operating for 2 or more days, material misrepresentations, conviction of a felony, dishonest or unethical conduct, unauthorized transfers, unauthorized use or disclosure of confidential information or Operations Manual, unauthorized use of Marks, having interest in competing business, creation of a threat to public health or safety not corrected within 24 hours, 3 or more defaults in any 12 month period, failure to attend training or conference 2 or more times, filing for bankruptcy relief. |
Source: Item 17 — RENEWAL, TERMINATION, TRANSFER, AND DISPUTE RESOLUTION (FDD pages 34–36)
What This Means (2025 FDD)
According to Aw's 2025 Franchise Disclosure Document, failure to locate a site in time is considered a non-curable default. Specifically, if a franchisee fails to locate a site or open a Papa Ray's Pizza Restaurant within the time frame required by Aw, it constitutes a "cause" for termination that cannot be remedied. This is outlined in Section 15.1 of the franchise agreement.
This provision is significant for potential Aw franchisees because it means that meeting the site selection and opening deadlines is critical. Failure to do so gives Aw the right to terminate the franchise agreement without allowing the franchisee an opportunity to correct the issue. This could result in the loss of the franchise and any investments made up to that point.
In addition to failure to locate a site in time, other actions that Aw considers non-curable defaults include failing to satisfactorily complete initial training, abandonment of the business, ceasing operations for two or more days, making material misrepresentations, being convicted of a felony, engaging in dishonest or unethical conduct, making unauthorized transfers, unauthorized use or disclosure of confidential information or the Operations Manual, unauthorized use of Marks, having an interest in a competing business, creating a threat to public health or safety not corrected within 24 hours, having three or more defaults in any 12-month period, and failing to attend training or conferences two or more times. These defaults also give Aw the right to terminate the franchise agreement without opportunity to cure.