What are the non-competition covenants after the Aw franchise is terminated or expires?

According to Aw's 2025 Franchise Disclosure Document, if the franchise is terminated or expires, the franchisee is subject to certain non-competition covenants. Specifically, for a period of two years, the franchisee cannot be involved in a competing business within a 20-mile radius of their former Papa Ray’s Pizza Restaurant location or any other Papa Ray’s Pizza Restaurant. These restrictions also apply after an assignment of the franchise.

This means that upon termination or expiration of the Aw franchise agreement, a franchisee is restricted from engaging in any competing business within the specified geographic area for the stated duration. This non-compete agreement is designed to protect Aw's market share and brand recognition by preventing former franchisees from using their knowledge and experience gained while operating an Aw franchise to directly compete with the system.

Prospective franchisees should carefully consider the implications of this non-competition covenant. It could significantly limit their business opportunities after leaving the Aw system, especially if they plan to remain in the same geographic area and industry. It is important to fully understand the scope and enforceability of these restrictions before entering into a franchise agreement. Franchisees should seek legal counsel to assess the potential impact of the non-compete clause on their future business endeavors.