In the Aw Franchise Agreement, what does the term 'Owners' refer to?
Aw Franchise · 2025 FDDAnswer from 2025 FDD Document
In this Agreement, we refer to Rayyan Pizza Franchise LLC as "we", "us" or the "Company." We refer to you as "you" or "Franchisee." If you are a corporation, limited liability company or a partnership, you will notice certain provisions that are applicable to your shareholders, members or partners on whose business skill, financial capability and personal character we are relying in entering into this Agreement. Those individuals will be referred to in this Agreement as "Owners."
Source: Item 22 — CONTRACTS (FDD pages 39–40)
What This Means (2025 FDD)
According to Aw's 2025 Franchise Disclosure Document, the term 'Owners' refers to the shareholders, members, or partners of a franchisee entity (corporation, limited liability company, or partnership). Aw relies on the business skill, financial capability, and personal character of these individuals when entering into the Franchise Agreement.
This definition is important because certain provisions in the Franchise Agreement apply specifically to these 'Owners.' For instance, all Owners of the franchisee entity must execute the Guaranty and Assumption of Obligations attached as Exhibit 2, indicating they are personally guaranteeing the franchisee's obligations. Additionally, Aw requires compliance with Anti-Terrorism Laws from both the franchisee and its Owners.
Furthermore, if a franchisee or its Owners wish to sell, assign, or transfer the franchise rights, the Papa Ray's Pizza Restaurant, or an ownership interest in the franchisee, they must first offer it to Aw. Aw also provides on-site start-up assistance and training to the franchisee, its Owners, manager, and employees. Aw may also require that the franchisee, its Owners, and/or managers attend supplemental training, seminars, regional franchise meetings, or webinars.