Does Aw need to approve the material terms and conditions of the assignment from you to the proposed assignee?
Aw Franchise · 2025 FDDAnswer from 2025 FDD Document
- (h) we must have approved the material terms and conditions of the assignment from you to the proposed assignee and must have determined that the price and terms of payment are not so
burdensome as to adversely affect the future operations of your Papa Ray's Pizza Restaurant by the assignee;
Source: Item 22 — CONTRACTS (FDD pages 39–40)
What This Means (2025 FDD)
According to Aw's 2025 Franchise Disclosure Document, Aw must approve the material terms and conditions of the assignment from the franchisee to the proposed assignee. Specifically, Aw must determine that the price and terms of payment are not so burdensome as to adversely affect the future operations of the Papa Ray's Pizza Restaurant by the assignee.
This requirement ensures that Aw maintains control over who becomes a franchisee and that the terms of the assignment are reasonable and will not negatively impact the brand. It protects Aw from potential issues arising from an assignee who may not be financially stable or capable of running the franchise effectively due to unfavorable assignment terms.
For a prospective Aw franchisee, this means that if they decide to sell their franchise, they cannot simply agree to any terms with a buyer. Aw has the right to review and approve the financial aspects of the deal to ensure the continued success of the franchise under new ownership. This adds a layer of complexity to the sale process but is intended to safeguard the overall health of the Aw franchise system.