What insurance policies must be furnished to Aw before opening a Papa Ray's Pizza Restaurant?
Aw Franchise · 2025 FDDAnswer from 2025 FDD Document
awards, or other relevant changes in circumstances. Each insurance policy must name us (and, if we request it, our officers, members, managers and employees) as an additional insured and must provide us with thirty (30) days advance written notice of any material modification, cancellation, or expiration of the policy.
Before you open the Papa Ray's Pizza Restaurant and before the expiration of the term of each insurance policy, you must furnish us with a copy of each policy you are to maintain for the upcoming term, along with evidence of the payment of the premium for each. If you do not maintain the required insurance coverage, or do not furnish us with satisfactory evidence of your insurance coverage and the payment of the premiums for them, we may, but have no obligation to, and in addition to our other rights and remedies under this Agreement, any required insurance coverage on your behalf. In such case, you agree to fully cooperate with us in our effort to obtain the insurance policies, promptly execute all forms or instruments required to obtain or maintain the insurance, allow any inspections of the Papa Ray's Pizza Restaurant which are required to obtain or maintain the insurance and pay to us, on demand, any costs and premiums we incur.
Your obligation to maintain insurance coverage as described in this Agreement will not be reduced in any manner by reason of any separate insurance we maintain on our own behalf, nor will our maintenance of that insurance relieve you of any obligations under this Agreement.
11.13 Computer System; Internet Access. You must purchase and/or lease and use in your operation of the Papa Ray's Pizza Restaurant the point of sale system and/or computer system specified by us in the Operations Manual or otherwise in writing, including, but not limited to, any software system that was designed exclusively for or modified for the System. You are responsible for becoming proficient in the use of any required point of sale and computer systems. If we introduce proprietary software into the System, you must install and use the proprietary software in the operation of your Papa Ray's Pizza Restaurant and comply with all specification and standards prescribed by us from time to time in the Operations Manual, including but not limited to signing a software license agreement and paying applicable fees. We shall have the right to access, for any purpose or use related to our operation, management and/or monitoring of the System, any information or reports generated or stored by the required point of sale system or computer system. We shall have the right to require you to replace any of the components of your point of sale and/or computer system if we deem the component to be (a) undersized or otherwise insufficient for the efficient operation and management of the Papa Ray's Pizza Restaurant, or (b) incompatible with our computer system or the computer system that we designate for franchise network use.
We may require you to establish and maintain an active e-mail account and have high speed access to the Internet for communicating with and receiving information from us, and for on-line ordering for customers.
12. ADVERTISING
12.1 Marketing Fund.
Source: Item 22 — CONTRACTS (FDD pages 39–40)
What This Means (2025 FDD)
According to Aw's 2025 Franchise Disclosure Document, before opening a Papa Ray's Pizza Restaurant, franchisees must furnish copies of all required insurance policies to Aw. They must also provide evidence of premium payments. The specific insurance policies required include: comprehensive public liability, product liability, and motor vehicle liability insurance with minimum coverage of $1,000,000 per occurrence and $2,000,000 in the aggregate; general casualty insurance including fire and extended coverage, vandalism, and malicious mischief insurance for 100% of the replacement value of the Papa Ray's Pizza Restaurant and its contents; workers' compensation and employer's liability insurance as required by applicable law; and business interruption insurance for a minimum of twelve months.
Aw retains the right to modify the required coverage amounts or types of insurance policies at any time to reflect inflation, new risks, changes in law, or other relevant circumstances. Each insurance policy must name Aw (and its officers, members, managers, and employees, if requested) as an additional insured. Additionally, Aw must receive thirty days' advance written notice of any material modification, cancellation, or expiration of the policy.
If a franchisee fails to maintain the required insurance coverage or provide satisfactory evidence of coverage and premium payments, Aw has the option to obtain the necessary insurance on the franchisee's behalf. In such cases, the franchisee is obligated to cooperate with Aw, execute all required forms, allow inspections, and promptly pay all costs and premiums incurred by Aw. The franchisee's obligation to maintain insurance coverage is not reduced by any separate insurance Aw may maintain, nor does Aw's insurance relieve the franchisee of their obligations under the agreement. This ensures that both the franchisee and Aw are protected against potential liabilities and losses.