If an Aw franchisee is unable to maintain possession of the premises, what must they do to renew?
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 su
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. To do so, the franchisee must secure an approved substitute premises. Additionally, the franchisee must agree to develop the substitute premises expeditiously, ensuring it complies with the specifications and standards that Aw requires for new or renewal franchises.
Beyond securing a new location and adhering to Aw's development standards, the franchisee and their owners must also meet Aw's then-current training requirements. This includes attending any training classes that Aw deems necessary to ensure the franchisee is up-to-date with the brand's operational standards and practices.
In addition to these requirements, Aw charges a renewal fee of $2,500.00 for the services they provide and the expenses they incur during the renewal process. This fee covers Aw's administrative costs and the support they offer to franchisees during the renewal period. Meeting all these conditions ensures that the franchisee can continue operating under the Aw brand for another term, even if they have to relocate their Papa Ray's Pizza Restaurant.