What happens if an Aw franchisee begins construction before Aw approves the final construction plans?
Aw Franchise · 2025 FDDAnswer from 2025 FDD Document
dinances, building codes, permit requirements, and lease requirements and restrictions applicable to the Premises. You must advise us of any variation from the specifications that are necessary to meet local requirements. You must submit final construction plans and specifications to us for our approval before you begin construction at the Premises, and must construct the Papa Ray's Pizza Restaurant in accordance with those approved plans.
- 4.4 Development of the Papa Ray's Pizza Restaurant. You agree at your own expense to do the following: (1) secure all financing required to fully develop the Papa Ray's Pizza Restaurant;
Source: Item 22 — CONTRACTS (FDD pages 39–40)
What This Means (2025 FDD)
According to Aw's 2025 Franchise Disclosure Document, a franchisee must submit final construction plans and specifications for Aw's approval before starting any construction at the premises. Furthermore, the franchisee is obligated to construct the Papa Ray's Pizza Restaurant according to the approved plans.
Aw specifies that the franchisee cannot open the Papa Ray's Pizza Restaurant for business until several conditions are met. These conditions include fulfilling all obligations related to development, decoration, furnishing, and equipping the restaurant according to Aw's approved plans and specifications. Aw must also determine that the restaurant is constructed, decorated, furnished, equipped, and stocked in accordance with the approved plans.
In practical terms, if a franchisee begins construction before obtaining Aw's approval, they risk non-compliance with the franchise agreement. This could lead to delays in opening, additional expenses to rectify unapproved construction, and potential disputes with Aw. The franchisee bears the responsibility of securing all financing, permits, and licenses, and must ensure that construction aligns with Aw's standards to avoid any issues that could prevent the restaurant from opening.