Must an Aw franchisee maintain possession of the premises to renew their franchise?
Aw Franchise · 2025 FDDAnswer from 2025 FDD Document
another Papa Ray's Pizza Restaurant in the former Protected Area or (iii) terminate this Agreement upon delivery of written notice to you.
3. RENEWAL OF FRANCHISE
- 3.1 Franchisee's Right to Renew. Subject to the provisions of Paragraph 3.2 below, and if you have substantially complied with all provisions of this Agreement and any other agreement between us, then on expiration of the initial term of the Franchise, you will have the right to renew the Franchise for one (1) additional successive term of ten (10) years if: (1) you maintain possession of the Premises, or (2) you are unable to maintain possession of the Premises or in our judgment the Papa Ray's Pizza Restaurant should be relocated, and you secure an approved substitute premises and agree to expeditiously develop the substitute premises in compliance with specifications and standards then applicable under new or renewal franchises for Papa Ray's Pizza Restaurants. You and your Owners must also comply with our then-current training requirements and attend su
Source: Item 22 — CONTRACTS (FDD pages 39–40)
What This Means (2025 FDD)
According to Aw's 2025 Franchise Disclosure Document, a franchisee generally needs to maintain possession of the premises to renew their franchise agreement. However, there is an exception. If the franchisee is unable to maintain possession, or if Aw believes the Papa Ray's Pizza Restaurant should be relocated, the franchisee can secure an approved substitute premises. The franchisee must then agree to develop the substitute premises according to Aw's current specifications and standards for new or renewal franchises.
In addition to maintaining possession of the premises (or securing a substitute), the franchisee and their owners must comply with Aw's then-current training requirements and attend any necessary training classes. The franchisee must also provide Aw with written notice of their intent to renew at least nine months before the end of the current franchise term.
Aw will charge a renewal fee of $2,500 for services rendered and expenses incurred during the renewal process. The renewal is contingent upon the franchisee's continued compliance with all terms and conditions of the franchise agreement up to the expiration date. Furthermore, as a condition for renewal, the franchisee must make reasonable capital expenditures to remodel, upgrade, and redecorate the premises to reflect the current image of a Papa Ray's Pizza Restaurant.