What happens if an Aw franchisee is convicted of a felony?

According to Aw's 2025 Franchise Disclosure Document, if a franchisee is convicted of a felony, it can have significant consequences for their franchise agreement. Specifically, if a franchisee is convicted of, or pleads no contest to, a felony, Aw has grounds to terminate the franchise agreement. This also applies if the franchisee engages in any dishonest or unethical conduct that may adversely affect the reputation of Aw, the franchisee's Papa Ray's Pizza Restaurant, the System, or the goodwill associated with the Marks.

This provision protects Aw's brand and reputation. A felony conviction or unethical behavior by a franchisee could damage the public's perception of the entire franchise system, leading to decreased sales and a loss of customer trust. By including this clause, Aw ensures that its franchisees maintain a certain standard of conduct.

For a prospective Aw franchisee, this means that maintaining a clean criminal record and adhering to ethical business practices is not just a matter of personal integrity but also a requirement for remaining in good standing with the franchise. Failure to do so could result in the termination of their franchise agreement and the loss of their investment.