Does the Aw Franchise Agreement allow the franchisee to relocate the Papa Ray's Pizza Restaurant after the initial location is established?
Aw Franchise · 2025 FDDAnswer from 2025 FDD Document
- 3.1 Franchisee's Right to Renew.
Subject to the provisions of Paragraph 3.2 below, and if you have substantially complied with all provisions of this Agreement and any other agreement between us, then on expiration of the initial term of the Franchise, you will have the right to renew the Franchise for one (1) additional successive term of ten (10) years if: (1) you maintain possession of the Premises, or (2) you are unable to maintain possession of the Premises or in our judgment the Papa Ray's Pizza Restaurant should be relocated, and you secure an approved substitute premises and agree to expeditiously develop the substitute premises in compliance with specifications and standards then applicable under new or renewal franchises for Papa Ray's Pizza Restaurants.
Source: Item 22 — CONTRACTS (FDD pages 39–40)
What This Means (2025 FDD)
According to Aw's 2025 Franchise Disclosure Document, the Franchise Agreement addresses relocation in the context of renewal. Specifically, if a franchisee is unable to maintain possession of the premises or Aw believes the Papa Ray's Pizza Restaurant should be relocated, the franchisee can renew the franchise for an additional ten-year term if they secure an approved substitute premises. This new location must then be developed according to Aw's current specifications and standards for new or renewal franchises.
This clause provides an avenue for franchisees to continue operating their Papa Ray's Pizza Restaurant even if their original location becomes untenable. However, the relocation is tied to the renewal of the franchise agreement, meaning it primarily applies at the end of the initial term. The franchisee must also obtain Aw's approval for the new location and meet their current standards, which could involve additional costs or modifications to the business.
It is important to note that this section focuses on relocation during the renewal process. The FDD excerpt does not explicitly detail the possibility of relocation during the initial ten-year term of the agreement. A prospective franchisee should clarify with Aw the conditions and procedures for relocation outside of the renewal context, as this could significantly impact their operational flexibility and long-term business strategy.