What is the length of the additional successive term for an Aw franchise renewal?
Aw Franchise · 2025 FDDAnswer from 2025 FDD Document
another Papa Ray's Pizza Restaurant in the former Protected Area or (iii) terminate this Agreement upon delivery of written notice to you.
3. RENEWAL OF FRANCHISE
- 3.1 Franchisee's Right to Renew. Subject to the provisions of Paragraph 3.2 below, and if you have substantially complied with all provisions of this Agreement and any other agreement between us, then on expiration of the initial term of the Franchise, you will have the right to renew the Franchise for one (1) additional successive term of ten (10) years if: (1) you maintain possession of the Premises, or (2) you are unable to maintain possession of the Premises or in our judgment the Papa Ray's Pizza Restaurant should be relocated, and you secure an approved substitute premises and agree to expeditiously develop the substitute premises in compliance with specifications and standards then applicable under new or renewal franchises for Papa Ray's Pizza Restaurants. You and your Owners must also comply with our then-current training requirements and attend such training classes as we deem necessary. We will charge you a renewal fee of Two Thousand Five Hundred Dollars ($2,500.00) for services we render to you and expenses we incur in conjunction with the renewal.
- 3.2 Notice of Renewal and Nonrenewal. You must give us written notice of your election to exercise your option to renew at least nine (9) months before the end of the term of this Agreement. Within sixty (60) days of our receipt of your notice, we agree to give you written notice of any deficiencies in your operation or historical performance of the Papa Ray's Pizza Restaurant which could cause us not to renew the Franchise. Our notice will state what actions, if any, you must take to correct the deficiencies in your operation of the Papa Ray's Pizza Restaurant or of the Premises and will specify the time period in which those deficiencies must be corrected. Renewal of the Franchise will be conditioned on your continued compliance with all the terms and conditions of this Agreement up to the date of expiration.
Source: Item 22 — CONTRACTS (FDD pages 39–40)
What This Means (2025 FDD)
According to Aw's 2025 Franchise Disclosure Document, a franchisee has the right to renew their franchise for one additional term of ten years, provided they have substantially complied with the franchise agreement and other agreements with Aw. To renew, the franchisee must maintain possession of the premises or secure an approved substitute location if maintaining possession is not possible or if Aw deems relocation necessary. The franchisee must also agree to develop the substitute premises according to Aw's current specifications and standards for new or renewal franchises. Furthermore, the franchisee and their owners must meet Aw's then-current training requirements, attending any training classes that Aw considers necessary.
To exercise the renewal option, the franchisee must provide written notice to Aw at least nine months before the end of the current franchise term. Upon receiving this notice, Aw has 60 days to inform the franchisee of any deficiencies in their operation or historical performance that could lead to non-renewal. This notice will detail the actions needed to correct these deficiencies and the timeframe for doing so. The renewal is contingent upon the franchisee's continued compliance with all terms and conditions of the franchise agreement up to the expiration date.
In addition to meeting operational and compliance standards, Aw requires the franchisee and their owners to sign the then-current standard franchise agreement, which may include different royalty fees, advertising fees, and other provisions compared to the original agreement. Franchisees must also sign any ancillary agreements that Aw is currently using for granting or renewing franchises, along with a general release of all claims against Aw and its affiliates. Failure to sign these agreements and releases within 30 days of delivery will be considered an election not to renew the franchise. A renewal fee of $2,500.00 will be charged for services rendered and expenses incurred by Aw in connection with the renewal.