Does the lease for an Aw franchise need to permit the use of all signs required by the franchisor?
Aw Franchise · 2025 FDDAnswer from 2025 FDD Document
At our option, we may require that the lease: (i) have a term, with initial and renewal terms, at least equal to the initial term of this Agreement; (ii) be collaterally assigned to us (with the consent of the lessor, if required), by execution of the Collateral Assignment of Lease attached hereto as Exhibit 3 (the assignment may be exercised only upon your default under the lease or this Agreement or the expiration or termination of this Agreement); (iii) provides that the lessor shall give written notice to us (concurrently with you) of any default by you under the lease, and will give us an additional fifteen (15) days to cure any default not cured by you during the cure period and assign the lease to us if defaults are cured by us; (iv) permits the use on the Premises of all signs required by the us for Papa Ray's Pizza Restaurants, subject to applicable local laws, codes and ordinances; (v) provides that on expiration or termination of your Franchise Agreement, we may enter the leased
premises and remove all signs, sign-faces and other items identifying Marks; (vi) provides that the Premises will only be used for the operation of a Papa Ray's Pizza Restaurant; and (vii) provides that the lessor will not lease other premises in the same shopping center to a competing business.
Source: Item 22 — CONTRACTS (FDD pages 39–40)
What This Means (2025 FDD)
According to Aw's 2025 Franchise Disclosure Document, the lease for the premises must allow the use of all signs that Aw requires for its Papa Ray's Pizza Restaurants, while also adhering to local laws, codes, and ordinances. This requirement ensures that the franchisee can properly display Aw's branding and marketing materials at the restaurant location.
Before a franchisee signs a lease, Aw must approve it and can mandate specific terms. This includes ensuring the lease term matches the franchise agreement's initial term, assigning the lease to Aw as collateral, receiving notice of any lease defaults, and having the right to cure those defaults. Aw also requires that the lease stipulates the premises be used only for a Papa Ray's Pizza Restaurant and that the lessor does not lease space in the same shopping center to competing businesses.
Upon termination or expiration of the franchise agreement, Aw has the option to enter the leased premises and remove all signs and items that identify the Marks. If Aw does not take over the lease, the franchisee must modify the premises to prevent any association with Aw or its system. These provisions are designed to protect Aw's brand identity and prevent confusion after a franchise agreement ends.