Is Aw Papa Ray's Pizza required to provide a map of the protected area?
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.
As long as you are not in default under the Franchise Agreement, we will not establish another franchised, company-owned or affiliate-owned Papa Ray's Pizza Restaurant in your Protected Area, except for a Papa Ray's Pizza Restaurant in a limited use facility. A limited use facility includes those located within airports, railroad stations or other transportation facilities; stadiums, racetracks or other sport facilities; enclosed shopping centers; casinos; theaters, auditoriums, amusement parks or other entertainment facilities; military bases; and college campuses; and similar types of captive locations. Based on our right to establish restaurants in limited use facilities, you will not receive an exclusive territory. You may face competition from other franchisees, from outlets that we own, or from other channels of distribution or competition brands that we control.
We reserve the right both within and outside the Protected Area, to: (i) offer and sell similar products using our Marks or other marks through an alternate distribution system, including the Internet or through different types of business locations, such as grocery chains or other retail stores; (ii) establish businesses offering similar services and products using different marks; (iii) acquire or be acquired by a company establishing businesses identical or similar to Papa Ray's Pizza Restaurants; and (iv) engage in any other business activities not expressly prohibited by the Franchise Agreement. We are not required to pay you if we exercise any of these rights within your Protected Area.
Source: Item 12 — TERRITORY (FDD pages 29–30)
What This Means (2025 FDD)
According to Aw's 2025 Franchise Disclosure Document, once the site for a Papa Ray's Pizza Restaurant is approved, Aw will assign a protected area to the franchisee. This protected area will have a minimum radius of 3 miles from the restaurant's location. The boundaries of this area are determined by factors such as population density, demographics, existing competition, and topographical features.
Aw indicates that a map and/or description of the protected area will be attached as Exhibit 1 to the Franchise Agreement. This means that prospective franchisees should expect to receive a visual representation or detailed written explanation of their exclusive territory as part of their agreement.
However, the FDD also states that Aw does not grant exclusive territories, as they reserve the right to establish Papa Ray's Pizza Restaurants in limited use facilities such as airports, shopping centers, and college campuses, even within a franchisee's protected area. Aw also retains the right to sell similar products through alternate distribution channels like the Internet or grocery stores, both within and outside the protected area. This could create competition for franchisees even within their assigned territory.