What is the minimum radius of the Protected Area granted to an Aw Papa Ray's Pizza franchisee?
Aw Franchise · 2025 FDDAnswer from 2025 FDD Document
Once the site for your Papa Ray's Pizza Restaurant is approved, we will assign a protected area ("Protected Area") for your Papa Ray's Pizza Restaurant. Your Protected Area will be a minimum radius of 3 miles from the premises of the Papa Ray's Pizza Restaurant. The boundaries will be determined based on population density, demographics, existing competition in the market, major and restricting topographical features which define contiguous areas, and other relevant factors. A map and/or description of your Protected Area will be attached at Exhibit 1 to your Franchise Agreement.
Source: Item 12 — TERRITORY (FDD pages 29–30)
What This Means (2025 FDD)
According to Aw's 2025 Franchise Disclosure Document, a franchisee will be assigned a protected area once the site for their Papa Ray's Pizza Restaurant is approved. The minimum radius of this protected area is 3 miles from the premises of the restaurant. However, the actual boundaries of the protected area are not solely determined by this radius.
The FDD specifies that the boundaries will be determined based on factors such as population density, demographics, existing competition, topographical features, and other relevant considerations. This means that while the minimum radius is 3 miles, the actual shape and size of the protected area can vary depending on the specific location and market conditions. A map and/or description of the Protected Area will be attached at Exhibit 1 to the Franchise Agreement.
It's important to note that Aw reserves the right to establish Papa Ray's Pizza Restaurants in "limited use facilities" even within a franchisee's protected area. These facilities include locations such as airports, train stations, stadiums, shopping centers, military bases, and college campuses. This means that a franchisee may face competition from other Aw locations within their protected area if such a facility is present. Additionally, Aw retains the right to sell similar products through alternate distribution channels, such as the Internet or grocery stores, both within and outside the protected area.