What happens if an Aw franchisee is unable to maintain possession of the premises for renewal?
Aw Franchise · 2025 FDDAnswer from 2025 FDD Document
another Papa Ray's Pizza Restaurant in the former Protected Area or (iii) terminate this Agreement upon delivery of written notice to you.
3. RENEWAL OF FRANCHISE
- 3.1 Franchisee's Right to Renew. Subject to the provisions of Paragraph 3.2 below, and if you have substantially complied with all provisions of this Agreement and any other agreement between us, then on expiration of the initial term of the Franchise, you will have the right to renew the Franchise for one (1) additional successive term of ten (10) years if: (1) you maintain possession of the Premises, or (2) you are unable to maintain possession of the Premises or in our judgment the Papa Ray's Pizza Restaurant should be relocated, and you secure an approved substitute premises and agree to expeditiously develop the substitute premises in compliance with specifications and standards then applicable under new or renewal franchises for Papa Ray's Pizza Restaurants. You and your Owners must also comply with our then-current training requirements and attend such training classes as we deem necessary. We will charge you a renewal fee of Two Thousand Five Hundred Dollars ($2,500.00) for services we render to you and expenses we incur in conjunction with the renewal.
- 3.2 Notice of Renewal and Nonrenewal. You must give us written notice of your election to exercise your option to renew at least nine (9) months before the end of the term of this Agreement. Within sixty (60) days of our receipt of your notice, we agree to give you written notice of any deficiencies in your operation or historical performance of the Papa Ray's Pizza Restaurant which could cause us not to renew the Franchise. Our notice will state what actions, if any, you must take to correct the deficiencies in your operation of the Papa Ray's Pizza Restaurant or of the Premises and will specify the time period in which those deficiencies must be corrected.
Source: Item 22 — CONTRACTS (FDD pages 39–40)
What This Means (2025 FDD)
According to Aw's 2025 Franchise Disclosure Document, a franchisee can still renew their franchise agreement for an additional ten-year term even if they cannot maintain possession of their current premises. However, this is contingent on securing an approved substitute premises. The franchisee must also agree to develop the new location according to Aw's current specifications and standards for new or renewal franchises.
In addition to securing a new location, the franchisee and their owners must comply with Aw's then-current training requirements, attending any classes that Aw deems necessary. The franchisee will also need to pay a renewal fee of $2,500 for the services Aw provides and the expenses they incur during the renewal process.
To initiate the renewal process, the franchisee must provide Aw with written notice of their intent to renew at least nine months before the end of the current franchise term. Aw will then have 60 days to notify the franchisee of any deficiencies in their operation or historical performance that could prevent renewal. The notice will detail any actions needed to correct these deficiencies and the timeframe for completion. Ultimately, the renewal is conditional on the franchisee's continued compliance with all terms and conditions of the franchise agreement up to the expiration date.