Can other fees in the renewal agreement for an Aw franchise differ from the initial agreement?
Aw Franchise · 2025 FDDAnswer from 2025 FDD Document
To renew the franchise, the Company, you and your Owners must sign the then-current form of standard franchise agreement, which agreement will replace this Agreement in all respects, and which may contain royalty fees, advertising fees and other fees and provisions that differ from those contained in this Agreement; any ancillary agreements we are then customarily using in the grant or renewal of franchises for the operation
of Papa Ray's Pizza Restaurants (with appropriate modifications to reflect the fact that the agreement relates to the grant of a renewal franchise); and a general release, in a form satisfactory to us, of any and all claims against us and our affiliates, and our respective officers, directors, shareholders, employees, and agents. If either you or any of your Owners refuse to sign those agreements and releases within thirty (30) days after their delivery, you will be deemed to have elected not to renew the Franchise.
Source: Item 22 — CONTRACTS (FDD pages 39–40)
What This Means (2025 FDD)
According to Aw's 2025 Franchise Disclosure Document, the fees in the renewal agreement can differ from the initial agreement. To renew the franchise, the franchisee, the Company (presumably Aw itself), and the franchisee's Owners must sign the then-current form of standard franchise agreement. This new agreement will replace the original agreement and may include different royalty fees, advertising fees, and other fees and provisions.
This means that when a franchisee renews their Aw franchise, they should anticipate that the financial terms, including royalty fees, advertising contributions, and other fees, could be different from what they initially agreed to. These changes reflect Aw's then-current business model and market conditions.
It is important for prospective franchisees to carefully review the then-current franchise agreement at the time of renewal to fully understand the updated fee structure and other obligations. Additionally, franchisees must sign ancillary agreements that Aw is then customarily using in the grant or renewal of franchises and a general release of claims against Aw and its affiliates. Failure to sign these agreements and releases within 30 days of delivery will result in the franchisee being deemed to have elected not to renew the Franchise.