factual

If an Aw franchisee fails to secure a suitable site, can Aw terminate the agreement immediately?

Aw Franchise · 2025 FDD

Answer from 2025 FDD Document

  • (a) fail to locate and secure a suitable site, or to open your Papa Ray's Pizza Restaurant for business as provided in Paragraphs 4.1 and 4.6 or fail to satisfactorily complete the training program as provided in Paragraph 5.1;

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 immediately, without opportunity to cure, if the franchisee fails to locate and secure a suitable site. This is contingent on the stipulations outlined in Paragraphs 4.1 and 4.6 of the franchise agreement. The franchisee must also open their Papa Ray's Pizza Restaurant for business as outlined in those paragraphs. Additionally, failure to satisfactorily complete the training program as detailed in Paragraph 5.1 also constitutes grounds for immediate termination.

This clause in the franchise agreement places significant responsibility on the franchisee to secure an appropriate location and begin operations promptly. The franchisee bears the risk of immediate termination without any chance to rectify the situation if they cannot find a suitable site or fulfill the opening requirements. This differs from other default scenarios where Aw might provide a period to cure the default.

Prospective Aw franchisees should carefully review Paragraphs 4.1, 4.6, and 5.1 of the franchise agreement to fully understand the site selection and training obligations. They should also assess their ability to meet these requirements within the specified timeframe to avoid the risk of immediate termination. It would be prudent to discuss site selection support and training program details with Aw prior to signing the agreement.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.