Does the Aw Franchise Agreement provide any exceptions regarding the location of the Papa Ray's Pizza Restaurant?

According to the 2025 Aw Franchise Disclosure Document, the agreement does contain exceptions regarding the location of Papa Ray's Pizza Restaurants. Specifically, Aw retains the right to grant franchises or operate Papa Ray's Pizza Restaurants within "limited use facilities" both inside and outside a franchisee's protected area. A "limited use facility" includes locations such as supermarkets and other retail facilities. This means that Aw could potentially place a Papa Ray's Pizza Restaurant in a location that might otherwise be considered within a franchisee's territory if it's within such a facility.

Additionally, Aw reserves the right to establish businesses that are franchised, licensed, or owned by them or any affiliate at any locations they deem appropriate. They can also distribute products or services similar to those offered under the Aw system under different trade names or trademarks. Aw also has the right to acquire or be acquired by a company establishing businesses identical or similar to Papa Ray's Pizza Restaurants, even if the other business operates, franchises, and/or licenses competitive businesses anywhere, including your Protected Area. These stipulations provide Aw with considerable latitude in establishing new locations or pursuing alternative distribution channels, even if they might compete with existing franchisees.

For a prospective franchisee, these exceptions highlight the importance of carefully evaluating the specific location and market conditions before investing in an Aw franchise. While a protected area is typically granted, these reserved rights mean that Aw retains the flexibility to expand its presence through other means, potentially impacting a franchisee's market share. It would be prudent for potential franchisees to discuss these exceptions with Aw and to conduct thorough market research to assess the potential for competition from other Aw-affiliated businesses or alternative distribution channels.