What happens if an Aw franchisee or their owners refuse to sign the renewal agreements and releases?
Aw Franchise · 2025 FDDAnswer from 2025 FDD Document
To renew the franchise, the Company, you and your Owners must sign the then-current form of standard franchise agreement, which agreement will replace this Agreement in all respects, and which may contain royalty fees, advertising fees and other fees and provisions that differ from those contained in this Agreement; any ancillary agreements we are then customarily using in the grant or renewal of franchises for the operation
of Papa Ray's Pizza Restaurants (with appropriate modifications to reflect the fact that the agreement relates to the grant of a renewal franchise); and a general release, in a form satisfactory to us, of any and all claims against us and our affiliates, and our respective officers, directors, shareholders, employees, and agents. If either you or any of your Owners refuse to sign those agreements and releases within thirty (30) days after their delivery, you will be deemed to have elected not to renew the Franchise.
Source: Item 22 — CONTRACTS (FDD pages 39–40)
What This Means (2025 FDD)
According to Aw's 2025 Franchise Disclosure Document, to renew the franchise agreement, the franchisee, Aw, and the franchisee's owners must sign the then-current form of the standard franchise agreement. This new agreement will replace the original agreement and may contain different royalty fees, advertising fees, other fees, and provisions. Additionally, they must sign any ancillary agreements Aw is using for franchise renewals for Papa Ray's Pizza Restaurants, adjusted to reflect that it is a renewal, and a general release of claims against Aw and its affiliates, officers, directors, shareholders, employees, and agents.
If the franchisee or any of their owners refuse to sign these agreements and releases within thirty days of delivery, the franchisee will be considered to have elected not to renew the franchise. This means the franchise will not be renewed for an additional term.
This requirement is significant for prospective Aw franchisees because it emphasizes the importance of being willing to accept potentially different terms in a renewal agreement. The franchisee should carefully consider whether they are prepared to agree to new terms and release Aw from any potential claims before deciding to invest in the franchise. Failing to comply with these requirements will result in non-renewal of the franchise.