Does Aw grant franchises in reliance upon the skill 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 carefully considers these attributes when deciding whether to award a franchise.
This reliance on the franchisee's personal and professional qualities has several implications. First, prospective franchisees should be prepared to demonstrate these qualities during the application process. This may involve providing detailed information about their background, experience, and financial resources. Second, the franchisee's ability to successfully operate the Papa Ray's Pizza Restaurant is considered crucial to the success of the franchise.
Furthermore, Aw's reliance on these qualities extends to the transfer of the franchise. If a franchisee wishes to sell or assign their franchise, Aw will assess the proposed assignee's character, skills, experience, and financial resources. Aw can withhold approval of the transfer if the proposed assignee does not meet Aw's standards. This ensures that any new franchisee also possesses the qualities that Aw deems necessary for success.