Does Aw impose limits on the number of approved suppliers for Papa Ray's Pizza Restaurants?
Aw Franchise · 2025 FDDAnswer from 2025 FDD Document
tions and/or names of approved suppliers.
If you would like to purchase any items from any unapproved supplier, you must submit a written request for approval of the proposed supplier. We will charge you (or the supplier) a non-refundable fee to cover the costs we incur in making this determination and will notify you of our decision within 30 days of our receipt of your request and all materials necessary to make our determination. We will establish procedures for submitting requests for approval of items and suppliers and may impose limits on the number of approved suppliers. Approval of a supplier may be conditioned on reputation, compliance with our specifications, product quality, timely delivery, standards of service and concentration of purchases for the benefit of the franchise system. However, our criteria for approving suppliers are not available to franchisees. We reserve the right to revoke approval of any approved supplier.
Other than our affiliate, none of our officers or managers has an ownership interest in an approved supplier.
Before you open your Papa Ray's Pizza Restaurant for business, you must obtain and maintain the insurance coverage that we require from time to time and meet other insurance-related
obligations described in the Franchise Agreement.
Source: Item 8 — RESTRICTIONS ON SOURCES OF PRODUCTS AND SERVICES (FDD pages 19–21)
What This Means (2025 FDD)
According to Aw's 2025 Franchise Disclosure Document, Aw retains the right to impose limits on the number of approved suppliers for Papa Ray's Pizza Restaurants. This means that while franchisees are generally required to purchase ingredients, food products, paper goods, packaging, uniforms, signs, direct mail marketing, and menu printing from Aw-approved suppliers, Aw can restrict the total number of suppliers a franchisee can choose from.
If a franchisee wishes to use a supplier not already approved, they must submit a written request for approval. Aw will charge a non-refundable fee to cover the costs of evaluating the proposed supplier. Aw will then notify the franchisee of their decision within 30 days of receiving the request and all necessary materials. Approval may depend on factors like the supplier's reputation, compliance with Aw's specifications, product quality, timely delivery, service standards, and purchase concentration for the benefit of the franchise system. However, Aw's specific criteria for approving suppliers are not disclosed to franchisees, and Aw reserves the right to revoke any supplier's approval.
The purchase of products from designated or approved suppliers, or in accordance with Aw's specifications and standards, will account for approximately 60% to 65% of a franchisee's initial purchases and leases when opening a Papa Ray's Pizza Restaurant. Ongoing purchases and leases from these sources will represent about 25% to 55% of the franchisee's operational expenses. While Aw negotiates arrangements with suppliers for the benefit of franchisees and currently receives rebates from two suppliers based on a percentage of franchisee purchases, Aw does not offer any material benefits, such as renewal or additional franchises, based on a franchisee's use of designated or approved suppliers.