What is the maximum time allowed to appoint a competent manager after the death or permanent disability of an Aw franchisee?
Aw Franchise · 2025 FDDAnswer from 2025 FDD Document
Prior to such transfer, the executor or other personal representative of such person, or the remaining Owners, must appoint a competent manager within a reasonable time, not to exceed thirty (30) days from the date of death or permanent disability. The appointment of this manager is subject to our prior written approval, and this manager must, if requested by us, attend and satisfactorily complete our training program. If Papa Ray's Pizza Restaurant is not being managed by a manager approved by us within thirty (30) days after the death or permanent disability, we are authorized, but we are not required, to immediately appoint a manager to maintain the operations of Papa Ray's Pizza Restaurant. Our appointment of a manager for your Papa Ray's Pizza Restaurant will not relieve you of your obligations under this Agreement, and we will not be liable for any debts, losses, costs or expenses incurred in the operation of your Papa Ray's Pizza Restaurant or to any of your creditors for any products, materials, supplies or services purchased by your Papa Ray's Pizza Restaurant during any period in which it is managed by the manager appointed by us. We have the right to charge a reasonable non-refundable fee for such management services and to cease providing such management services at any time.
Source: Item 22 — CONTRACTS (FDD pages 39–40)
What This Means (2025 FDD)
According to Aw's 2025 Franchise Disclosure Document, in the event of the death or permanent disability of a franchisee or one of their owners, their representative has a limited time to transfer the franchise interest to an approved person. Specifically, the executor or personal representative must transfer the interest within a reasonable timeframe, but no more than six months from the date of death or permanent disability. Failure to do so can result in termination of the franchise agreement.
Prior to this transfer, the executor, personal representative, or remaining owners must appoint a competent manager to oversee the Aw location. This appointment must occur within a reasonable time, but cannot exceed 30 days from the date of death or permanent disability. The appointment of this manager is subject to Aw's prior written approval, and Aw may require the manager to attend and satisfactorily complete their training program.
If a manager approved by Aw is not in place within 30 days following the death or permanent disability, Aw has the option, but not the obligation, to appoint a manager to maintain the restaurant's operations. It is important to note that Aw's appointment of a manager does not relieve the franchisee of their obligations under the agreement, and Aw is not liable for any debts, losses, costs, or expenses incurred during the period they manage the restaurant. Aw also has the right to charge a reasonable, non-refundable fee for these management services and can cease providing them at any time.