If I am convicted of a felony, can Aw terminate my franchise agreement?
Aw Franchise · 2025 FDDAnswer from 2025 FDD Document
ded in Paragraphs 14.2 and 14.3, provided that if the sale to such purchaser is not completed within one-hundred twenty (120) days after delivery of such offer to us, or if there is a material change in the terms of the offer, we will again have the right of first refusal herein provided.
15. TERMINATION OF THE FRANCHISE.
- 15.1 By the Company Without Opportunity to Cure. You will be deemed to be in default and we may, at our option, terminate this Agreement and all rights granted by this Agreement, without affording you an opportunity to cure the default, effective immediately upon delivery of notic
Source: Item 22 — CONTRACTS (FDD pages 39–40)
What This Means (2025 FDD)
According to Aw's 2025 Franchise Disclosure Document, Aw can terminate the franchise agreement without an opportunity to cure if you, or any of your owners, are convicted of a felony. Specifically, if you are convicted of or plead no contest to a felony, Aw has the right to terminate the agreement.
This provision protects Aw's brand reputation and the integrity of its franchise system. Dishonest or unethical conduct, including a felony conviction, can negatively impact the reputation of the company, the franchisee's Papa Ray's Pizza Restaurant, the System, and the goodwill associated with the Marks.
It is important to note that Aw can terminate the agreement immediately upon delivery of notice of termination, without providing an opportunity to correct the issue. This is a significant risk for franchisees, as a felony conviction can lead to immediate termination of the franchise agreement and loss of the business.