What is the length of the franchise term granted by Aw for operating a Papa Ray's Pizza Restaurant?
Aw Franchise · 2025 FDDAnswer from 2025 FDD Document
is being presented to you because of the desire you have expressed to obtain the right to develop, own and be franchised to operate a Papa Ray's Pizza Restaurant.
2. GRANT OF FRANCHISE
2.1 Term. You have applied for a franchise to own and operate a Papa Ray's Pizza Restaurant at one site approved by us in the following general area (when the exact location is determined, the parties will complete Exhibit 1 attached hereto):
_________________________________. We have approved your application in reliance on all of the representations you made in that application. As a result, and subject to the provisions of this Agreement, we grant to you a franchise (the "Franchise") to operate a restaurant using the Marks ("Papa Ray's Pizza Restaurant") and to use the System in the operation of that Papa Ray's Pizza Restaurant, for a term of ten (10) years commencing on the Agreement Date, unless this Agreement terminates before the end of such term as provided in Section 16 of this Agreement. Termination or expiration of this Agreement will constitute a termination or expiration of your Franchise. (All references to the "term" of this Agreement refer to the period from the Agreement Date, to the date on which this Agreement actually terminates or expires.)
- 2.2 Full Term Performance. You specifically agree to be obligated to operate the Papa Ray's Pizza Restaurant, perform the obligations of this Agreement, and continuously exert your best efforts to promote and enhance the Papa Ray's Pizza Restaurant and to affect the widest and best possible distribution of products and services from your Papa Ray's Pizza Restaurant within the Protected Territory, for the full term of this Agreement.
- 2.3 Protected Area. As long as this Agreement is in force and effect and you are not in default under any of the terms of this Agreement, we will not establish another Papa Ray's Pizza Restaurant franchise or operate itself or through an affiliate any other Papa Ray's Pizza Restaurant within the protected area described in Exhibit 1 ("Protected Area"). The Protected Area granted to you will be a certain mile radius from the Premises identified in Exhibit 1. The minimum radius that you will be granted is three (3) miles from the Premises.
Source: Item 22 — CONTRACTS (FDD pages 39–40)
What This Means (2025 FDD)
According to Aw's 2025 Franchise Disclosure Document, the initial franchise term for operating a Papa Ray's Pizza Restaurant is ten years, commencing on the agreement date. The agreement will terminate early if the conditions outlined in Section 16 are met. The franchisee is expected to operate the Papa Ray's Pizza Restaurant and meet the obligations of the agreement for the entire term.
At the end of the initial ten-year term, the franchisee has the option to renew the franchise for one additional term of ten years. To be eligible for renewal, the franchisee must have substantially complied with all the terms of the agreement and any other agreements with Aw. They must also maintain possession of the premises or secure an approved substitute premises if relocation is necessary.
Additionally, the franchisee and their owners must meet Aw's then-current training requirements. The renewal requires payment of a Two Thousand Five Hundred Dollars ($2,500.00) renewal fee. The franchisee must provide written notice of their intent to renew at least nine months before the end of the initial term. Aw will then notify the franchisee of any deficiencies that could affect the renewal, allowing the franchisee an opportunity to correct them.