What is the legal structure of the company offering Aw franchises?
Aw Franchise · 2025 FDDAnswer from 2025 FDD Document
Rayyan Pizza Franchise LLC ("the Company"), is an Illinois Limited Liability Company, formed in December 2012 ("Inception") for the purpose of offering franchise opportunities to entrepreneurs who want to own and operate their own Papa Ray's Restaurant as a franchise.
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 39)
What This Means (2025 FDD)
According to Aw's 2025 Franchise Disclosure Document, the company offering franchises is Rayyan Pizza Franchise LLC. It is structured as an Illinois Limited Liability Company (LLC). The company was formed in December 2012 with the purpose of offering franchise opportunities for individuals to own and operate a Papa Ray's Restaurant as a franchise.
As an LLC, Aw has a business structure that combines the pass-through taxation of a partnership or sole proprietorship with the limited liability of a corporation. This means that the profits and losses of Aw are passed through directly to its members' individual income tax returns, avoiding corporate income tax. However, the members also have some protection from the company's debts and liabilities.
For a prospective Aw franchisee, understanding the franchisor's legal structure is important because it can provide insights into the company's stability and financial practices. The LLC structure may offer some reassurance due to its blend of tax advantages and liability protection. Franchisees may want to further investigate the company's financials and history to ensure it is a stable and reliable franchisor.