Does the Aw Franchise Agreement require the franchisee to obtain approval for the Papa Ray's Pizza Restaurant location?
Aw Franchise · 2025 FDDAnswer from 2025 FDD Document
4. DEVELOPMENT AND OPENING OF THE RESTAURANT
- 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, the location is subject to Aw's approval. Before entering into a lease, franchisees must submit a site evaluation form, a letter of intent, a proposed lease, or other satisfactory evidence to Aw. Aw will then provide written notice of approval or disapproval within 30 days of receiving the proposal and required documents.
The Aw Franchise Agreement also stipulates that any lease or sublease of the premises must be approved by Aw before it is executed by the franchisee. Aw retains the right to require specific terms and provisions to be included in the lease or sublease. Furthermore, Aw has the unilateral right to terminate the agreement if the franchisee has not signed a lease for a site approved by Aw within 180 days from the date of the agreement.
While Aw may provide site selection assistance, the FDD clarifies that this assistance and any approval of a site do not guarantee the success of the location. This means that even with Aw's input, the franchisee bears the ultimate responsibility for the performance of their Papa Ray's Pizza Restaurant. This approval process is typical in franchising, as it allows Aw to maintain brand consistency and ensure locations meet certain standards.