What happens if the proposed assignee of an Aw franchise has conflicting interests unacceptable to the franchisor?

According to Aw's 2025 Franchise Disclosure Document, if a proposed assignee has conflicting interests that are unacceptable to Aw, the assignment of the franchise will not be approved. Aw states that it will not unreasonably withhold approval of an assignment if the franchisee and owners are in compliance with the agreement. However, the proposed assignee must be of good moral character, possess sufficient business experience, aptitude, and financial resources to operate a Papa Ray's Restaurant, and not have any conflicting interests that Aw deems unacceptable. The assignee must also meet Aw's standards for franchisees at the time of the proposed assignment.

This condition ensures that any new franchisee coming into the Aw system will not have divided loyalties or competing business interests that could negatively impact the brand. For example, if the proposed assignee owns a competing pizza restaurant, Aw could reasonably determine that this creates a conflict of interest.

Therefore, a franchisee looking to sell their Aw franchise needs to be aware that the potential buyer's background and business affiliations will be scrutinized by Aw. Finding an assignee without any conflicting interests is crucial for securing the franchisor's approval and completing the transfer.