factual

Does the Aw Franchise Agreement specify any geographic limits to the protected area?

Aw Franchise · 2025 FDD

Answer from 2025 FDD Document

another Papa Ray's Pizza Restaurant franchise or operate itself or through an affiliate any other Papa Ray's Pizza Restaurant within the protected area described in Exhibit 1 ("Protected Area"). The Protected Area granted to you will be a certain mile radius from the Premises identified in Exhibit 1. The minimum radius that you will be granted is three (3) miles from the Premises. The criteria for determining the boundaries of the Protected Area include the population density, demographics, the amount of existing competition in the market, major and/or restricting topographical features which clearly define contiguous areas, and/or other factors we deem relevant to the operation of a Papa Ray's Pizza Restaurant. As a result of these considerations, the size of Protected Areas granted to franchisees may vary. Notwithstanding the foregoing, in the event the location of the Premises is within a limited use facility, your Protected Area shall be limited to the limited use facility (as defined below) in which your Papa Ray's Pizza Restaurant is located.

  • 2.4 Our Reservation 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. If you obtain our consent to deliver or provide catering services outside of the Protected Area, and subject to standards, specifications and procedures for delivery and catering as set forth in the Operations Manual, you may deliver and provide catering services outside of the Protected Area only as long as the area does not fall within the Protected Area assigned to another Papa Ray's Pizza franchisee or affiliate-owned Papa Ray's Pizza Restaurant. If the area is later assigned to a Papa Ray's Pizza franchisee, you must immediately cease all deliveries and catering services to customers located in the other franchisee's Protected Area.

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 specify geographic limits to the protected area granted to a franchisee. The Protected Area will be a certain mile radius from the Premises identified in Exhibit 1, with a minimum radius of three (3) miles from the Premises. The specific boundaries of the protected area are determined by factors such as population density, demographics, existing competition, topographical features, and other factors Aw deems relevant. As a result, the size of Protected Areas granted to franchisees may vary.

However, if the Aw restaurant is located within a limited use facility, the Protected Area is limited to that facility. Limited use facilities include locations like airports, transportation hubs, stadiums, shopping centers, casinos, entertainment venues, military bases, and college campuses. Aw also retains the right to grant franchises or operate its own restaurants outside the Protected Area and within limited use facilities.

Aw also reserves the right to distribute products and services through alternative channels, such as supermarkets, mail order systems, and the internet, both within and outside the Protected Area. Franchisees are restricted from providing delivery or catering services outside their Protected Area without prior written consent from Aw. If consent is granted, such services are allowed only if the area is not within another franchisee's Protected Area. Franchisees are also prohibited from conducting targeted marketing within another franchisee's Protected Area.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.