Does the Aw Franchise Agreement include any provisions for renegotiating the location of the Papa Ray's Pizza Restaurant?
Aw Franchise · 2025 FDDAnswer from 2025 FDD Document
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 does not explicitly use the term "renegotiating the location." However, it does address the possibility of relocating the Papa Ray's Pizza Restaurant under specific circumstances, particularly during the renewal of the franchise agreement.
Specifically, if a franchisee is unable to maintain possession of the premises or if Aw determines that the Papa Ray's Pizza Restaurant should be relocated, the franchisee has the option to secure an approved substitute premises. To do so, the franchisee must agree to develop the substitute premises in compliance with the specifications and standards applicable to new or renewal franchises for Papa Ray's Pizza Restaurants. This implies that the franchisee may need to invest in remodeling or upgrading the new location to meet Aw's current image standards.
This provision is tied to the renewal of the franchise agreement, which occurs after the initial term of ten years. The franchisee's right to renew is contingent upon substantial compliance with the existing agreement and securing an approved substitute premises if relocation is necessary. The franchisee is responsible for finding a suitable site, though Aw may provide site selection assistance. Ultimately, Aw must approve the new site, and the franchisee must adhere to Aw's standards for the new location. This process ensures that any relocation aligns with Aw's brand standards and operational requirements.