In the Aw franchise agreement, what is the significance of the 'Agreement Date'?
Aw Franchise · 2025 FDDAnswer from 2025 FDD Document
| This | Franchise | Agreement | (the | "Agreement") | is | being | entered | as | of |
|---|---|---|---|---|---|---|---|---|---|
| , 20 (the "Agreement Date"). | The parties to this | ||||||||
| Agreement are you,, as Franchisee, and us (Rayyan | |||||||||
| Pizza Franchise LLC, | an Illinois limited liability company) of 33 W. Higgins, Suite 1050, South | ||||||||
| Barrington, IL 60010 and, if you are a partnership, limited liability company or corporation, your | |||||||||
| "Owners" (defined below). |
2. GRANT OF FRANCHISE
2.1 Term. You have applied for a franchise to own and operate a Papa Ray's Pizza Restaurant at one site approved by us in the following general area (when the exact location is determined, the parties will complete Exhibit 1 attached hereto):
____________________________. We have approved your application in reliance on all of the representations you made in that application. As a result, and subject to the provisions of this Agreement, we grant to you a franchise (the "Franchise") to operate a restaurant using the Marks ("Papa Ray's Pizza Restaurant") and to use the System in the operation of that Papa Ray's Pizza Restaurant, for a term of ten (10) years commencing on the Agreement Date, unless this Agreement terminates before the end of such term as provided in Section 16 of this Agreement. Termination or expiration of this Agreement will constitute a termination or expiration of your Franchise. (All references to the "term" of this Agreement refer to the period from the Agreement Date, to the date on which this Agreement actually terminates or expires.)
| THIS GUARANTY AND ASSUMPTION OF OBLIGATIONS is given this day of , 20, by |
|---|
| In consideration of, and as an inducement to, the execution of that certain Franchise |
| Agreement of even date herewith (the "Agreement") by Rayyan Pizza Franchise LLC (the |
| "Company"), each of the undersigned hereby personally and unconditionally, jointly and severally: |
| (a) guarantees to the Company, and its successors and assigns, for the term of the Agreement and |
| thereafter |
Source: Item 22 — CONTRACTS (FDD pages 39–40)
What This Means (2025 FDD)
According to the 2025 Aw Franchise Disclosure Document, the 'Agreement Date' marks the commencement of the franchise term. The franchise agreement specifies that the franchise term lasts for ten years, starting from the Agreement Date. This date is crucial for determining when the franchise agreement begins and, consequently, when it will expire, unless terminated earlier as per the agreement's terms.
The Agreement Date is also significant because various obligations and rights under the franchise agreement are tied to it. For instance, the franchisee's right to operate a Papa Ray's Pizza Restaurant under the Aw system is effective from this date. Similarly, the franchisor's commitment to not establish another franchised or company-operated Papa Ray's Pizza Restaurant within the franchisee's protected area is contingent upon the agreement being in effect, which starts from the Agreement Date.
Furthermore, the Agreement Date is used to identify the specific franchise agreement being referenced in related documents such as the Guaranty and Assumption of Obligations. This ensures clarity and avoids confusion regarding which agreement the guarantor is bound to. Therefore, the 'Agreement Date' serves as a fundamental reference point for the duration, rights, and obligations defined within the Aw franchise agreement.