Does the lease need to permit the use of all signs required by Aw?
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
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 required by Aw for its Papa Ray's Pizza Restaurants, while adhering to local laws, codes, and ordinances. This requirement is part of the terms and provisions that Aw may mandate in the lease or sublease agreement, which Aw must approve before the franchisee executes it.
This provision ensures that Aw maintains uniformity and brand consistency across all franchise locations. It allows Aw to enforce its signage standards, which are crucial for brand recognition and customer attraction. However, the franchisee must also ensure compliance with local regulations, which may sometimes conflict with Aw's standard signage requirements.
Prospective franchisees should be aware of this requirement and factor in potential costs associated with installing and maintaining the mandated signage. They should also proactively engage with local authorities to understand any restrictions or requirements that may impact the installation or display of signs. Franchisees need to balance Aw's brand standards with local legal compliance to avoid potential conflicts or additional expenses.