Can an Aw franchisee transfer their franchise in the event of death by declaration of or transfer in trust without Aw's prior written approval?
Aw Franchise · 2025 FDDAnswer from 2025 FDD Document
- 14.2 By Franchisee With Approval. You understand and acknowledge that the rights and duties created by this Agreement are personal to you and we have granted the franchise in reliance upon the individual or collective character, skill, aptitude, attitude, business ability and financial capacity of you (and your Owners). Therefore, except as otherwise provided in Paragraph 14.5 below, neither the franchise, your Papa Ray's Pizza Restaurant or a substantial portion of the assets of your Papa Ray's Pizza Restaurant (or any interest therein) nor any part or all of the ownership of an entity that is the Franchisee may be voluntarily, involuntarily, directly or indirectly, assigned, sold, subdivided, subfranchised or otherwise transferred by you or your Owners (including, without limitation, by merger or consolidation, by issuance of additional securities representing an ownership interest in the Franchisee, or in the event of the death of the Franchisee or an Owner of the Franchisee, by will, declaration of or transfer in trust or the laws of intestate succession) without our prior written
Source: Item 22 — CONTRACTS (FDD pages 39–40)
What This Means (2025 FDD)
According to Aw's 2025 Franchise Disclosure Document, a franchisee cannot transfer their franchise in the event of death by declaration of or transfer in trust without Aw's prior written approval. Specifically, Item 14.2 states that such transfers require prior written approval from Aw.
In the event of the death or permanent disability of the franchisee (or any of their owners), the executor or personal representative must transfer the interest to a person approved by Aw within six months. These transfers are subject to the same terms and conditions as other assignments and transfers. Failure to transfer the interest within the required time frame can result in termination of the franchise agreement.
During the transfer period, the executor or personal representative (or the remaining owners) must appoint a competent manager within 30 days of the death or disability, subject to Aw's approval. If requested by Aw, this manager must complete the training program. If a manager approved by Aw is not in place within 30 days, Aw has the option to appoint a manager to maintain operations, but this does not relieve the franchisee of their obligations. Aw may charge a reasonable non-refundable fee for these management services and can cease providing them at any time.