Does the Aw franchise agreement allow either party to incur debt on behalf of the other?
Aw Franchise · 2025 FDDAnswer from 2025 FDD Document
Except as expressly authorized by this Agreement, neither of us will make any express or implied agreements, warranties, guarantees or representations, or incur any debt, in the name of or on behalf of the other or represent that our relationship is other than that of franchisor and franchisee.
Source: Item 22 — CONTRACTS (FDD pages 39–40)
What This Means (2025 FDD)
According to Aw's 2025 Franchise Disclosure Document, the franchise agreement explicitly prohibits either Aw or the franchisee from incurring any debt in the name of or on behalf of the other party, unless expressly authorized by the agreement. This is a common provision in franchise agreements to ensure that each party remains responsible for their own financial obligations and liabilities.
This provision protects Aw from being held liable for any debts or financial obligations that a franchisee may incur while operating their Papa Ray's Pizza Restaurant. Similarly, it protects the franchisee from being held responsible for Aw's debts. This reinforces the independent contractor relationship between the franchisor and franchisee.
Prospective Aw franchisees should understand that they are solely responsible for managing their own finances and will not be able to rely on Aw to assume any debt on their behalf. It is important for franchisees to carefully manage their financial obligations and ensure they have sufficient capital to operate their Papa Ray's Pizza Restaurant.