Does Aw guarantee the success of a location if they provide site selection assistance?
Aw Franchise · 2025 FDDAnswer from 2025 FDD Document
You are responsible for leasing a suitable site for your Papa Ray's Pizza Restaurant.
We may in our discretion provide site selection assistance to you.
Prior to entering into a lease to acquire a site, you must submit to us a site evaluation form for the proposed, together with a letter of intent, proposed lease or other evidence satisfactory to us which confirms your favorable prospects for obtaining the proposed site.
We will provide you written notice of approval or disapproval of the proposed site within thirty (30) days after receiving your written proposal and required documents.
While we will use our experience in providing any assistance to you regarding site selection and in granting approval of a site, nothing contained herein shall be interpreted as a guarantee of success for said location.
You must have leased a site for the Premises which has been approved by us within one hundred eighty (180) days of the date of this Agreement.
We have the unilateral right (but not the obligation) to terminate this Agreement upon notice to you if you have not signed a lease for a site approved by us for your Papa Ray's Pizza Restaurant within one hundred eighty (180) from the date of this Agreement.
Source: Item 22 — CONTRACTS (FDD pages 39–40)
What This Means (2025 FDD)
According to Aw's 2025 Franchise Disclosure Document, while Aw may provide site selection assistance, this does not guarantee the success of the location. The franchisee is responsible for leasing a suitable site for their Papa Ray's Pizza Restaurant. Prior to signing a lease, the franchisee must submit a site evaluation form, a letter of intent, a proposed lease, or other evidence to Aw for approval. Aw will then provide written notice of approval or disapproval within 30 days of receiving the proposal and required documents.
Aw uses its experience to assist with site selection and grant approval, but the FDD explicitly states that this assistance should not be interpreted as a guarantee of success. The franchisee must secure an approved site within 180 days of the franchise agreement. If a lease for an approved site is not signed within this timeframe, Aw has the right to terminate the agreement.
This is a common practice in franchising. Franchisors often provide site selection assistance based on their experience and market knowledge, but ultimately, the success of a franchise location depends on various factors, many of which are outside the franchisor's control. These factors can include local market conditions, competition, management skills, and the franchisee's ability to execute the business plan. Therefore, Aw, like many other franchisors, does not guarantee success, even with their site selection assistance.