factual

Is an Aw franchisee prohibited from seeking to employ any person employed by the franchisor or its affiliate?

Aw Franchise · 2025 FDD

Answer from 2025 FDD Document

  • (c) employ or seek to employ any person employed by us or our affiliate, or otherwise directly or indirectly induce or seek to induce such person to leave his or her employment;

You agree not to recruit or hire, either directly or indirectly, any employee (or former employee for six (6) months after his or her employment has ended) of a Papa Ray's Pizza Restaurant operated by us, our affiliate or another Papa Ray's Pizza franchisee without our prior written consent.

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 employing or attempting to employ anyone currently working for Aw or its affiliates. The franchisee is also prohibited from attempting to persuade these individuals to leave their employment with Aw or its affiliates. This restriction is in place to protect Aw's workforce and prevent franchisees from poaching employees.

This restriction also extends to former employees of other Aw franchisees. Specifically, a franchisee cannot recruit or hire any employee (or former employee for six (6) months after his or her employment has ended) of a Papa Ray's Pizza Restaurant operated by us, our affiliate or another Papa Ray's Pizza franchisee without our prior written consent.

This type of clause is common in franchise agreements to protect the franchisor's and other franchisees' investment in their employees. It prevents franchisees from unfairly competing for labor and potentially disrupting the operations of other locations within the Aw system. A prospective franchisee should consider this restriction when evaluating the availability of qualified staff in their area and factor in the potential need to develop their own workforce.

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.