What is the Aw franchisee required to continuously exert their best efforts to affect regarding the distribution of products and services from their Papa Ray's Pizza Restaurant within the Protected Territory?
Aw Franchise · 2025 FDDAnswer from 2025 FDD Document
You specifically agree to be obligated to operate the Papa Ray's Pizza Restaurant, perform the obligations of this Agreement, and continuously exert your best efforts to promote and enhance the Papa Ray's Pizza Restaurant and to affect the widest and best possible distribution of products and services from your Papa Ray's Pizza Restaurant within the Protected Territory, for the full term of this Agreement.
Source: Item 22 — CONTRACTS (FDD pages 39–40)
What This Means (2025 FDD)
According to Aw's 2025 Franchise Disclosure Document, as a franchisee, you must continuously exert your best efforts to promote and enhance your Papa Ray's Pizza Restaurant. This includes working to affect the widest and best possible distribution of products and services from your restaurant within your protected territory for the entire term of the Franchise Agreement. This obligation begins on the agreement date and lasts for the full ten-year term, unless the agreement is terminated earlier as per Section 16.
This requirement means Aw franchisees are expected to be actively involved in maximizing their restaurant's potential within their designated area. This involves not only maintaining operational standards but also actively seeking ways to increase sales and market penetration. Franchisees need to be proactive in their approach to business development within their protected territory.
Failure to meet this performance standard could have consequences. For example, if a franchisee does not achieve a minimum annual gross revenue of $300,000 beginning in the second year of operation, Aw may require the franchisee to increase spending on local advertising, reduce or eliminate the protected area, or even terminate the agreement. Therefore, franchisees must be committed to continuous improvement and active management of their business to meet Aw's expectations and avoid potential penalties.