Does Aw grant franchises in reliance upon the business ability of the franchisee?
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, Aw grants franchises in reliance upon the individual or collective character, skill, aptitude, attitude, business ability, and financial capacity of the franchisee and their owners. This means that Aw evaluates these factors when deciding whether to award a franchise.
This reliance on the franchisee's capabilities is further emphasized in the context of franchise assignments. If a franchisee wishes to transfer their franchise to someone else, Aw will assess the proposed assignee's moral character, business experience, aptitude, and financial resources. Aw must find the proposed assignee satisfactory based on these criteria before approving the transfer.
These conditions ensure that new Aw franchisees and those assuming existing franchises possess the necessary traits and resources to uphold the brand's standards and maintain successful operations. Prospective franchisees should be prepared to demonstrate their qualifications in these areas during the application process.