In the Aw franchise agreement, if the franchisee is an entity, what information must be provided for 'A'?
Aw Franchise · 2025 FDDAnswer from 2025 FDD Document
aurant or to any of your creditors for any products, materials, supplies or services purchased by your Papa Ray's Pizza Restaurant during any period in which it is managed by the manager appointed by us. We have the right to charge a reasonable non-refundable fee for such management services and to cease providing such management services at any time.
- 14.5 Entity as Franchisee; Assignment to an Entity. If you are a corporation, limited liability company or partnership, you represent and warrant to us that you are duly organized and validly existing in good standing under the laws of the state of your incorporation or organization,
that you are qualified to do business in all states in which you are required to qualify, that you have the authority to execute, deliver and carry out all of the terms of this Agreement, and that during the term of this Agreement the only business you will conduct will be the development, ownership and operation of the Papa Ray's Pizza Restaurant. The articles of incorporation or organization, by-laws and other organizational documents of the entity must recite that the issuance and assignment of any interest in such entity is restricted by the terms of Section 14 of this Agreement and all issued and outstanding certificates of ownership interest in the entity must bear a legend reflecting or referring to the restrictions of Section 14 of this Agreement.
Source: Item 22 — CONTRACTS (FDD pages 39–40)
What This Means (2025 FDD)
According to Aw's 2025 Franchise Disclosure Document, if the franchisee is a corporation, limited liability company, or partnership, they must confirm they are properly organized and in good standing under the laws of their state. Additionally, they must confirm they are qualified to conduct business in all required states and have the authority to fulfill the terms of the franchise agreement. They also must agree that the only business they conduct during the agreement will be the development, ownership, and operation of the Papa Ray's Pizza Restaurant.
Furthermore, the franchisee's organizational documents, such as articles of incorporation or organization and by-laws, must state that any interest issuance or assignment is restricted by Section 14 of the agreement. All ownership certificates must also have a legend that reflects these restrictions.
All owners of the franchisee entity must execute the Guaranty and Assumption of Obligations attached as Exhibit 2. Franchisees must also submit any documents reasonably requested by Aw to show compliance with these requirements.