Does the Aw Franchise Agreement outline any exceptions to the protected area, such as online sales or catering?
Aw Franchise · 2025 FDDAnswer from 2025 FDD Document
of Rights**. We have the right to grant outside of the Protected Area such other Papa Ray's Pizza Restaurant businesses and franchises as we, in our sole and exclusive discretion, deem appropriate. We and any affiliates reserve the right, both within and outside of the Protected Area to:
- (a) grant a Papa Ray's Pizza Restaurant franchise or operate ourselves or through an affiliate a Papa Ray's Pizza Restaurant located within a limited use facility. A limited use facility includes those located within airports, railroad stations or other transportation facilities; stadiums, racetracks or other sport facilities; enclosed shopping centers; casinos; theaters, auditoriums, amusement parks or other entertainment facilities; military bases; and college campuses; and similar types of captive locations;
- (b) distribute products and services which comprise, may in the future comprise or which do not comprise, a part of the System through any alternative distribution channels including,
but not limited to, supermarkets and other retail facilities, mail order systems, the Internet or similar electronic media, using the Marks ("Alternate Distribution Channels");
- (c) establish businesses which are franchised, licensed or owned by us or any affiliate at any locations we deem appropriate or distribute products or services which are similar to the products and services offered under the System under trade names, trademarks, service marks, trade dress or other commercial symbols other than the Marks.
- (d) to acquire or be acquired by a company establishing businesses identical or similar to the Papa Ray's Pizza Restaurants, even if the other business operates, franchises, and/or licenses competitive businesses anywhere, including your Protected Area; and
- (e) to engage in any other business activities not expressly prohibited by this Agreement.
- 2.5 Delivery, Catering and Marketing Restrictions. You are prohibited from providing delivery service to or catering services at any location outside your Protected Area unless you obtain our prior written consent to do so.
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 outline exceptions to the protected area. Aw reserves the right to distribute products and services through alternative channels, including supermarkets, retail facilities, mail order systems, and the Internet, both within and outside the protected area. This means that Aw can engage in online sales without restriction, even if it impacts a franchisee's territory.
Additionally, Aw retains the right to establish franchises or operate businesses within limited use facilities such as airports, stadiums, shopping centers, and college campuses, regardless of the protected area. This allows Aw to place additional locations in non-traditional venues that may draw customers from a franchisee's protected area.
Furthermore, franchisees are restricted from providing delivery or catering services outside their protected area without prior written consent from Aw. Even with consent, they must cease such services if the area is later assigned to another franchisee. Franchisees are also prohibited from engaging in wholesale activities or selling products through alternative distribution channels. These stipulations ensure Aw maintains control over distribution methods and can adjust territories as needed, potentially impacting a franchisee's business operations and revenue.