Does the Aw franchise agreement allow the franchisee to incur debt in the name of Aw?

According to Aw's 2025 Franchise Disclosure Document, franchisees are not authorized to incur debt in the name of or on behalf of Aw, unless expressly authorized by the franchise agreement. This restriction is in place to ensure that Aw is not held liable for any unauthorized financial obligations undertaken by its franchisees.

This provision protects Aw from potential financial risks associated with the independent actions of its franchisees. It also reinforces the distinct legal and financial relationship between Aw and its franchisees, clarifying that they are separate entities. Franchisees must operate their Papa Ray's Pizza Restaurant business independently and are responsible for their own financial obligations.

The franchise agreement also states that Aw will not be liable for any agreements, representations, or warranties made by the franchisee that are not expressly authorized. Furthermore, the franchisee is obligated to indemnify, defend, and hold Aw harmless from any liabilities, damages, and taxes arising from the franchisee's operation of the Papa Ray's Pizza Restaurant or any breach of the franchise agreement. This includes covering all costs reasonably incurred by Aw in defending against any claims.

This clause is a standard provision in franchise agreements, designed to protect the franchisor from liabilities arising from the franchisee's actions. Prospective Aw franchisees should be aware of this limitation and ensure they manage their business finances responsibly, as they will be solely responsible for any debts or obligations they incur.