If I want to transfer my Aw franchise, is a general release required?
Aw Franchise · 2025 FDDAnswer from 2025 FDD Document
| PROVISION | SECTION | SUMMARY |
|---|---|---|
| IN FRANCHISE AGREEMENT | ||
| h. "Cause" defined – non-curable defaults | Section 15.1 | Failure to locate site or open Papa Ray's Pizza Restaurant in time required, failure to satisfactorily complete initial training, abandonment, cease operating for 2 or more days, material misrepresentations, conviction of a felony, dishonest or unethical conduct, unauthorized transfers, unauthorized use or disclosure of confidential information or Operations Manual, unauthorized use of Marks, having interest in competing business, creation of a threat to public health or safety not corrected within 24 hours, 3 or more defaults in any 12 month period, failure to attend training or conference 2 or more times, filing for bankruptcy relief. |
| i. Your obligations on termination/ non-renewal | Section 16 | Pay outstanding amounts, cease operating, cease using Marks, return items containing Marks, cancel fictitious names, transfer telephone number to us, return of confidential information, assign lease at our option or de identify the restaurant premises (see also o. and r. below) |
| j. | Section 14.1 | No restriction on our right to assign. |
| Assignment of contract by | ||
| franchisor. | ||
| k. "Transfer" by franchisee – definition | Section 14.2. | Includes transfer of any interest in Franchise Agreement, Papa Ray's Pizza Restaurant or a substantial portion of its assets or ownership change in franchisee. |
| l. Franchisor approval of transfer by franchisee | Sections 14.2 and 14.3 | Except for transfer to entity controlled by you, we have right to approve all transfers, but will not unreasonably withhold approval. Transfer to an entity is effective upon 30 days' notice to us once you sign our assignment agreement and all owners guaranty the franchise agreement obligations of the entity. |
| m. Conditions for franchisor approval of transfer | Section 14.3. | You have complied with Franchise Agreement during the term, all amounts due us and our affiliates are paid, transferee qualifies and completes training, lessor consents to lease assignment, transferee assumes your agreement or signs new agreement for remainder of term (at our option), transfer fee paid, general release signed by you and your owners, we approve terms of transfer and you subordinate buyer's debt to you to our interest in franchise business, and you or transferee remodel the restaurant premises (see also r below). |
Source: Item 17 — RENEWAL, TERMINATION, TRANSFER, AND DISPUTE RESOLUTION (FDD pages 34–36)
What This Means (2025 FDD)
According to Aw's 2025 Franchise Disclosure Document, a general release is required from you and your owners as a condition for Aw's approval of the transfer of your franchise.
Specifically, Aw requires that you sign a general release as part of the transfer conditions. This release likely covers any potential claims or liabilities that Aw might have against you or your owners up to the point of the transfer. This is a fairly standard practice in franchising to ensure a clean break and prevent future disputes related to the previous franchisee's operation of the business.
In addition to the general release, Aw has several other conditions that must be met for the transfer to be approved. These include ensuring you have complied with the Franchise Agreement during its term, all outstanding amounts due to Aw and its affiliates are paid, the transferee qualifies and completes training, the lessor consents to the lease assignment, the transferee assumes your agreement or signs a new one, a transfer fee is paid, Aw approves the transfer terms, you subordinate the buyer's debt to your interest in the franchise, and you or the transferee remodel the restaurant premises.