Can an Aw franchisee employ someone who is employed by the franchisor or its affiliate?
Aw Franchise · 2025 FDDAnswer from 2025 FDD Document
Further, during the term of this Agreement, you will not (1) divert customers or business from your Papa Ray's Pizza Restaurant to any other business or (2) hire any employees of ours, our affiliates or any other franchisees.
Source: Item 22 — CONTRACTS (FDD pages 39–40)
What This Means (2025 FDD)
According to Aw's 2025 Franchise Disclosure Document, a franchisee is restricted from hiring employees of the franchisor, its affiliates, or other franchisees during the term of the agreement.
Specifically, the franchise agreement states that during the term of the agreement, the franchisee will not hire any employees of Aw, its affiliates, or any other franchisees. This restriction is in place to protect confidential information, encourage the free exchange of ideas among franchisees, and ensure franchisees deal exclusively with Aw.
This policy has significant implications for prospective franchisees. It means that Aw franchisees cannot actively recruit or employ individuals currently working within the Aw franchise system. This restriction aims to prevent conflicts of interest and maintain stability within the franchise network. However, the document does not specify whether a franchisee can hire a former employee of Aw or its affiliates.