Can an Aw franchisee provide delivery or catering services within another franchisee's protected area?
Aw Franchise · 2025 FDDAnswer from 2025 FDD Document
You can sell to any customers who come to your Papa Ray's Pizza Restaurant. You cannot provide delivery service or catering services to any location outside of your Protected Area unless you obtain our prior written consent to do so, and in no event will you be permitted to do so in the protected area granted to another Papa Ray's Pizza franchisee. You cannot conduct targeted marketing to promote your Papa Ray's Pizza Restaurant within the protected area granted to another Papa Ray's Pizza franchisee.
Source: Item 16 — RESTRICTIONS ON WHAT THE FRANCHISEE MAY SELL (FDD pages 33–34)
What This Means (2025 FDD)
According to Aw's 2025 Franchise Disclosure Document, franchisees are generally restricted from providing delivery or catering services outside of their protected area without prior written consent from Aw. Even with consent, Aw franchisees are not permitted to provide these services within another franchisee's protected area. If a location outside of a franchisee's protected area is later assigned to another Aw franchisee, the original franchisee must immediately cease all deliveries and catering services to customers in that protected area.
Aw also prohibits franchisees from conducting targeted marketing within another franchisee's protected area. Targeted marketing includes advertising and promotion directed at specific addresses, such as direct mailings, door leaflets, telephone solicitation, and localized signs. This restriction aims to prevent confusion among customers who might be solicited by multiple Aw franchisees.
These restrictions are designed to protect each Aw franchisee's territory and customer base, ensuring that they can focus on their local market without direct competition from other franchisees. However, Aw retains the right to offer and sell similar products through alternate distribution channels, such as the internet or grocery chains, both within and outside a franchisee's protected area. This means that while franchisees are protected from direct encroachment by other franchisees, they may still face competition from Aw's other business activities.