What obligations does Aw have in Item 11 regarding site selection that relate to the franchisee's obligations for site selection in Item 9?
Aw Franchise · 2025 FDDAnswer from 2025 FDD Document
- 4.1 Franchisee's Responsibilities and Company's Approval.
You are responsible for leasing a suitable site for your Papa Ray's Pizza Restaurant.
We may in our discretion provide site selection assistance to you.
Prior to entering into a lease to acquire a site, you must submit to us a site evaluation form for the proposed, together with a letter of intent, proposed lease or other evidence satisfactory to us which confirms your favorable prospects for obtaining the proposed site.
We will provide you written notice of approval or disapproval of the proposed site within thirty (30) days after receiving your written proposal and required documents.
While we will use our experience in providing any assistance to you regarding site selection and in granting approval of a site, nothing contained herein shall be interpreted as a guarantee of success for said location.
You must have leased a site for the Premises which has been approved by us within one hundred eighty (180) days of the date of this Agreement.
We have the unilateral right (but not the obligation) to terminate this Agreement upon notice to you if you have not signed a lease for a site approved by us for your Papa Ray's Pizza Restaurant within one hundred eighty (180) from the date of this Agreement.
- 4.2 Lease of Premises. Any lease or sublease of the Premises must be approved by us before it is executed by you and we can require that certain terms and provisions be included in the lease or sublease.
What This Means (2025 FDD)
According to Aw's 2025 Franchise Disclosure Document, Item 9 outlines the franchisee's obligations, including site selection and acquisition/lease, as detailed in Sections 4.1 and 4.2 of the Franchise Agreement and referenced in Items 7 and 11 of the FDD. Item 11 would, therefore, contain information about Aw's obligations related to site selection.
Item 22 provides a table of contents for the Franchise Agreement. Section 4 of the Franchise Agreement covers "Development and Opening of the Restaurant." Paragraph 4.1, titled "Franchisee's Responsibilities and Company's Approval," states that the franchisee is responsible for leasing a suitable site for their Papa Ray's Pizza Restaurant. However, Aw may provide site selection assistance at their discretion. Before the franchisee enters into a lease, they must submit a site evaluation form, a letter of intent, a proposed lease, or other satisfactory evidence to Aw for approval. Aw will then provide written notice of approval or disapproval within 30 days of receiving the proposal and required documents.
Aw states that while they will use their experience to assist with site selection and approval, this assistance does not guarantee the location's success. The franchisee must have a site approved by Aw within 180 days of the Franchise Agreement date. Aw has the right to terminate the agreement if a lease for an approved site is not signed within this timeframe. Additionally, any lease or sublease of the premises must be approved by Aw before it is executed, and Aw can require specific terms and provisions to be included in the lease or sublease.
In summary, while the franchisee is ultimately responsible for finding a suitable site, Aw retains significant control over the site selection process through its approval rights and the ability to dictate lease terms. A prospective franchisee should carefully consider these obligations and Aw's corresponding rights, as failure to secure an approved site within the specified timeframe can lead to termination of the franchise agreement.