Does the Aw Franchise Agreement require the franchisee to obtain approval from the franchisor for the location of the premises?
Aw Franchise · 2025 FDDAnswer from 2025 FDD Document
- 4.1 Franchisee's Responsibilities and Company's Approval.
You are responsible for leasing a suitable site for your Papa Ray's Pizza Restaurant.
We may in our discretion provide site selection assistance to you.
Prior to entering into a lease to acquire a site, you must submit to us a site evaluation form for the proposed, together with a letter of intent, proposed lease or other evidence satisfactory to us which confirms your favorable prospects for obtaining the proposed site.
We will provide you written notice of approval or disapproval of the proposed site within thirty (30) days after receiving your written proposal and required documents.
While we will use our experience in providing any assistance to you regarding site selection and in granting approval of a site, nothing contained herein shall be interpreted as a guarantee of success for said location.
You must have leased a site for the Premises which has been approved by us within one hundred eighty (180) days of the date of this Agreement.
We have the unilateral right (but not the obligation) to terminate this Agreement upon notice to you if you have not signed a lease for a site approved by us for your Papa Ray's Pizza Restaurant within one hundred eighty (180) from the date of this Agreement.
- 4.2 Lease of Premises. Any lease or sublease of the Premises must be approved by us before it is executed by you and we can require that certain terms and provisions be included in the lease or sublease.
Source: Item 22 — CONTRACTS (FDD pages 39–40)
What This Means (2025 FDD)
According to Aw's 2025 Franchise Disclosure Document, franchisees are responsible for leasing a suitable site for their Papa Ray's Pizza Restaurant; however, Aw maintains significant control over site selection. Before signing a lease, franchisees must submit a site evaluation form, a letter of intent, a proposed lease, or other evidence demonstrating favorable prospects for securing the site to Aw for approval. Aw will then provide written notice of approval or disapproval within 30 days of receiving the franchisee's proposal and required documents.
Aw may provide site selection assistance at its discretion, but the FDD clarifies that this assistance does not guarantee the location's success. The franchisee must secure an Aw-approved site within 180 days from the date of the Franchise Agreement. Failure to do so gives Aw the unilateral right to terminate the agreement.
Furthermore, any lease or sublease of the premises requires Aw's approval before it is executed. Aw can also mandate that specific terms and provisions be included in the lease or sublease. This level of oversight is common in franchising to ensure brand consistency and protect the franchisor's interests. These stipulations in the Aw Franchise Agreement ensure that the location and lease terms align with Aw's standards and business strategy.