For how long after the Aw franchise is terminated or expires does the non-competition covenant apply?

According to Aw's 2025 Franchise Disclosure Document, if the franchise is terminated or expires, the franchisee is restricted from involvement in a competing business for a period of 2 years. This restriction applies within a 20-mile radius of the franchisee's Papa Ray’s Pizza Restaurant or any other Papa Ray’s Pizza Restaurant.

This non-compete agreement means that after the franchise ends, a former Aw franchisee cannot operate or be involved with a similar pizza business within the specified geographic area for the stated duration. This is designed to protect Aw's market share and brand recognition by preventing former franchisees from using their knowledge of Aw's operations to compete against them directly in the same area.

The terms of the non-compete also apply after assignment, meaning if the franchisee sells or transfers their franchise, the same restrictions apply to the new owner should they also leave the Aw system. Franchisees should carefully consider these limitations before deciding to terminate their agreement or allow it to expire, as it could significantly restrict their future business opportunities.

Non-compete clauses are common in franchising to protect the franchisor's investment in its brand and system. The specific terms, such as the duration and geographic scope, can vary widely among different franchise systems. The Aw agreement appears to have a fairly standard non-compete duration and radius.