How does Aw's Item 11 assistance with site selection relate to the site selection and acquisition/lease obligations of the franchisee in Item 9?
Aw Franchise · 2025 FDDAnswer from 2025 FDD Document
Before you open your Papa Ray's Pizza Restaurant, we will do the following under the Franchise Agreement:
- Approve the location of your Papa Ray's Pizza Restaurant. We will provide you with written notice of approval or disapproval within 30 days after receiving your written proposal for the site and required information on the site. Although we may provide some assistance in locating an acceptable site for you, you are responsible for securing a site. In approving or disapproving a proposed site, we will consider factors such as visibility, traffic count, access to parking, and demographics of the surrounding area. We highly recommend trying to secure a site that already is configured for a restaurant and that contains some existing kitchen fixtures and equipment. You will lease the premises for Papa Ray's Pizza Restaurant from independent third parties. Any lease for the premises must include certain terms we require. (Franchise Agreement, Section 4.2 and Exhibit 3 to Franchise Agreement)
If you have not secured a site approved by us within 180 days of signing the Franchise Agreement, we can terminate your franchise.
What This Means (2025 FDD)
According to Aw's 2025 Franchise Disclosure Document, Item 9 outlines the franchisee's obligations, including site selection and acquisition/lease, which are further detailed in Sections 4.1 and 4.2 of the Franchise Agreement and Items 7 and 11 of the FDD. Item 11 describes the franchisor's assistance with site selection.
Aw will approve the location of the Papa Ray's Pizza Restaurant, providing written notice of approval or disapproval within 30 days of receiving the franchisee's written proposal and required site information. While Aw may offer some help in finding a suitable location, the franchisee is ultimately responsible for securing the site. Aw will consider factors like visibility, traffic count, parking access, and local demographics when evaluating a proposed site. Aw also recommends securing a site already configured for a restaurant with existing kitchen fixtures and equipment.
The franchisee must lease the premises from independent third parties, and any lease must include terms required by Aw. If a franchisee fails to secure an approved site within 180 days of signing the Franchise Agreement, Aw has the right to terminate the franchise agreement. This highlights the importance of proactive site selection by the franchisee and the potential consequences of delays.
In summary, while Aw offers assistance and approval in the site selection process, the franchisee bears the primary responsibility for finding and securing a suitable location that meets Aw's criteria and lease requirements. Failure to do so within the specified timeframe can lead to termination of the franchise agreement.