factual

Is a franchisee of Aw required to personally supervise the operations of their Papa Ray's Pizza Restaurant?

Aw Franchise · 2025 FDD

Answer from 2025 FDD Document

Under the Franchise Agreement, you are not required to personally supervise the operations of your Papa Ray's Pizza Restaurant; however, your Papa Ray's Pizza Restaurant must at all times be under the direct, day-to-day, full-time, supervision of either you or, if you are an entity, an approved Owner who has satisfactorily completed our initial training program, or a manager who has satisfactorily completed our training program. If a manager supervises your Papa Ray's Pizza Restaurant, you or your approved Owner must remain active in overseeing the operations of your Papa Ray's Pizza Restaurant conducted under the supervision of the manager. The manager of your Papa Ray's Pizza Restaurant does not need to have an equity interest in your Papa Ray's Pizza

Restaurant but, must maintain the confidentiality of any of our confidential information to which he or she has access and managers must sign an agreement to maintain said confidentiality in a form approved by us.

Source: Item 15 — OBLIGATION TO PARTICIPATE IN THE ACTUAL OPERATION OF THE FRANCHISE BUSINESS (FDD pages 32–33)

What This Means (2025 FDD)

According to Aw's 2025 Franchise Disclosure Document, a franchisee is not required to personally supervise the operations of their Papa Ray's Pizza Restaurant. However, the restaurant must be under direct, day-to-day, full-time supervision. This supervision can be provided either by the franchisee themselves, or if the franchisee is an entity, by an approved Owner who has completed Aw's initial training program. Alternatively, a manager who has satisfactorily completed Aw's training program can provide the required supervision.

If a manager is supervising the Papa Ray's Pizza Restaurant, the franchisee or an approved Owner must still remain active in overseeing the operations conducted under the manager's supervision. The manager is not required to have an equity interest in the restaurant. However, the manager must maintain the confidentiality of Aw's confidential information and sign an agreement to that effect.

This arrangement provides flexibility for Aw franchisees who may not be able to dedicate their full time to the daily operations. However, it also ensures that the Papa Ray's Pizza Restaurant is always under qualified supervision, maintaining Aw's standards and protecting confidential information. The franchisee retains ultimate responsibility for the restaurant's performance, even when a manager is in charge of day-to-day operations.

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.