What obligations of the assignor and their owners must be assumed by the assignee for an Aw franchise assignment to be approved?

According to Aw's 2025 Franchise Disclosure Document, for an assignment of a franchise to be approved, the assignee must assume all obligations of the assignor (the current franchisee) and their owners incurred in connection with the Franchise Agreement. This means the new franchisee (assignee) takes on all the responsibilities and liabilities that the previous franchisee had under the original agreement.

In addition to assuming the assignor's obligations, the proposed assignee must meet Aw's standards for new franchisees. Aw states that the proposed assignee should be of good moral character, possess sufficient business experience, aptitude, and financial resources to operate a Papa Ray's Restaurant. The assignee should also not have any conflicting interests that are unacceptable to Aw and must meet Aw's then-current standards for franchisees.

This requirement ensures that Aw maintains consistent standards across all its franchise locations, even when ownership changes. Prospective assignees should carefully review the existing Franchise Agreement to fully understand the obligations they will be assuming. They should also be prepared to meet Aw's criteria for new franchisees, which may include demonstrating financial stability and relevant business experience. This protects Aw's brand and ensures that new franchisees are set up for success.