factual

Can a franchisee purchase fixtures, furniture, and equipment from any supplier for their Papa Ray's Pizza Restaurant, according to Aw?

Aw Franchise · 2025 FDD

Answer from 2025 FDD Document

  • 4.5 Fixtures, Furniture, Equipment and Signs.

You agree to purchase and install, at your expense, all fixtures, furniture, equipment (including required point of sale and/or computer systems) and signs we may direct from time to time and to purchase and use in the development and operation of the Papa Ray's Pizza Restaurant only fixtures, furniture and equipment from approved suppliers and/or that meet our standards and specifications.

  • 11.4 Approved Products, Distributors and Suppliers; Imprinted Products. The reputation and goodwill of Papa Ray's Pizza Restaurants is based on, and can be maintained only by, the provision and sale of high quality products and services and the provision, presentation and packaging of those products and services in an efficient and appealing manner. We have developed standards and specifications for various services, products, furniture, fixtures, signs, equipment, materials and supplies incorporated in or used in connection with the products and services authorized for sale at Papa Ray's Pizza Restaurants. We have also developed standards and specifications for suppliers of certain of the above products, including standards and requirements relating to product quality, prices, consistency, reliability, financial capability, labor relations and customer relations. We will provide you with a list of approved suppliers. You agree that the Papa Ray's Pizza Restaurant will purchase all fixtures, furniture, signs, materials, products and supplies from distributors and suppliers that we have approved (which may include us or our affiliates) and/or that conform to our specifications and standards.

We may approve a single distributor or other supplier (collectively "supplier") for any product and may approve a supplier only as to certain products. We may concentrate purchases with one or more suppliers to obtain lower prices or the best advertising support or services for any group of Papa Ray's Pizza Restaurants franchised or operated by us. We may, if we choose, take advantage of discounts offered by a supplier in connection with the acquisition of large quantities of products and resell these products at a profit to you. Approval of a supplier may be conditioned on requirements relating to the frequency of delivery, concentration of purchases, standards of service, including prompt attention to complaints, or other criteria and may be temporary, pending our continued evaluation of the supplier from time to time.

We may from time to time modify the list of approved products, furniture, fixtures, signs, equipment, materials and supplies and approved suppliers, and you may not, after receiving written notice of modification of the list, reorder any such items that are no longer approved or reorder from a supplier that is no longer approved. If you would like to purchase any of the foregoing

items of any brand, type or supplier which is not them approved, you must submit to us a written request for approval of the proposed product or supplier and such other information as we require. We have the right to inspect the proposed supplier's facilities, and to require product samples from the proposed supplier to be delivered, at our option, either directly to us or to any independent, certified entity which we designate for testing. Either you or the proposed supplier must pay us a fee in the amount of Two Hundred Fifty Dollars ($250.00) to make the evaluation. We reserve the right to periodically re-inspect the facilities and products of any approved supplier and to revoke our approval if the supplier does not continue to meet any of our criteria. We will, within a reasonable time, notify you of whether or not the proposed product and/or supplier is approved.

Source: Item 22 — CONTRACTS (FDD pages 39–40)

What This Means (2025 FDD)

According to Aw's 2025 Franchise Disclosure Document, franchisees are generally required to purchase fixtures, furniture, equipment, and signs from approved suppliers or those that meet Aw's standards and specifications. This includes point of sale and/or computer systems. Aw will provide a list of approved suppliers, which may include Aw or its affiliates.

A franchisee can request approval for a supplier that is not on the approved list. To do so, the franchisee must submit a written request, along with any other required information, to Aw for evaluation. Aw has the right to inspect the supplier's facilities and request product samples for testing, either directly or through an independent, certified entity. The franchisee or the proposed supplier must pay a fee of $250 to Aw for this evaluation. Aw will then notify the franchisee whether the proposed product or supplier is approved.

Aw may modify the list of approved suppliers and products from time to time, and franchisees are not allowed to reorder items from suppliers that are no longer approved after receiving written notice of the modification. Aw may also approve a single distributor for any product and may concentrate purchases with one or more suppliers to obtain lower prices or better advertising support. Approval of a supplier may be temporary and conditioned on factors such as delivery frequency, service standards, and attention to complaints.

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.