What is the minimum radius of the Protected Area that Aw will grant to a franchisee?
Aw Franchise · 2025 FDDAnswer from 2025 FDD Document
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.
The criteria for determining the boundaries of the Protected Area include the population density, demographics, the amount of existing competition in the market, major and/or restricting topographical features which clearly define contiguous areas, and/or other factors we deem relevant to the operation of a Papa Ray's Pizza Restaurant.
As a result of these considerations, the size of Protected Areas granted to franchisees may vary.
Notwithstanding the foregoing, in the event the location of the Premises is within a limited use facility, your Protected Area shall be limited to the limited use facility (as defined below) in which your Papa Ray's Pizza Restaurant is located.
Source: Item 22 — CONTRACTS (FDD pages 39–40)
What This Means (2025 FDD)
According to Aw's 2025 Franchise Disclosure Document, the minimum radius of the protected area granted to a franchisee is three miles from the premises. However, the FDD states that the size of the protected area may vary based on factors such as population density, demographics, existing competition, topographical features, and other factors Aw deems relevant.
This means that while a franchisee is guaranteed at least a 3-mile radius, Aw has the discretion to adjust the protected area based on market conditions. This could be beneficial if the area is densely populated, but it also carries the risk of a smaller protected area if Aw perceives the market conditions warrant it.
It's important to note that if the Aw location is within a limited use facility such as an airport, stadium, or college campus, the protected area is limited to that facility. Aw also retains the right to grant other franchises or operate its own locations within limited use facilities, even within a franchisee's protected area. Aw also reserves the right to distribute products and services through alternative channels such as supermarkets or the internet, both within and outside the protected area.
Prospective franchisees should carefully consider these factors and discuss with Aw how the protected area is determined for specific locations. Understanding the potential size and limitations of the protected area is crucial for assessing the potential success and profitability of an Aw franchise.