Can Aw incur any debt in the name of or on behalf of the franchisee?

According to Aw's 2025 Franchise Disclosure Document, Aw is not allowed to incur any debt in the name of or on behalf of the franchisee, unless expressly authorized by the franchise agreement. This also means that neither Aw nor the franchisee can make any agreements, warranties, guarantees, or representations that imply a relationship beyond that of franchisor and franchisee, unless explicitly authorized. This protects both parties from unauthorized liabilities.

This provision ensures that franchisees operate their Papa Ray's Pizza Restaurant business independently, bearing responsibility for their own financial obligations. It also clarifies that Aw is not liable for any unauthorized agreements, representations, or warranties made by the franchisee, nor for damages arising from the franchisee's operation of the business. The franchisee is responsible for all taxes levied against them or their assets.

The franchisee is obligated to indemnify and defend Aw against any liabilities, damages, or taxes arising from the franchisee's operation of the Papa Ray's Pizza Restaurant or any breach of the franchise agreement. This includes covering all costs reasonably incurred by Aw in defending against any claims. This section of the franchise agreement clearly defines the financial and legal responsibilities of both Aw and its franchisees, ensuring that each party is accountable for their own actions and obligations.