What happens if the price and terms of payment for the assignment are deemed unacceptable by Aw?

According to Aw's 2025 Franchise Disclosure Document, Aw must approve the material terms and conditions of the assignment. Aw must determine that the price and terms of payment are not so burdensome as to adversely affect the future operations of the Papa Ray's Pizza Restaurant by the assignee.

In practical terms, this means that if Aw believes the financial arrangement between the franchisee (seller) and the proposed buyer could negatively impact the restaurant's performance under the new owner, Aw can withhold its approval of the assignment. This protects Aw's brand and the overall franchise system by ensuring that new owners are set up for financial success.

This provision gives Aw significant control over franchise transfers. A franchisee looking to sell their Papa Ray's Pizza Restaurant needs to ensure that the deal's financial terms are reasonable and won't jeopardize the restaurant's future. It is important to note that Aw's assessment is based on the potential impact on the restaurant's operations, not necessarily on the profitability of the sale for the franchisee. Franchisees should consult with a broker experienced in franchise resales to structure a deal likely to be approved by Aw.