Does Papa Ray's Pizza have standards relating to prices for suppliers of Aw franchisees?
Aw Franchise · 2025 FDDAnswer from 2025 FDD Document
The reputation and goodwill of Papa Ray's Pizza Restaurants is based on, and can be maintained only by, the provision and sale of high quality products and services and the provision, presentation and packaging of those products and services in an efficient and appealing manner. We have developed standards and specifications for various services, products, furniture, fixtures, signs, equipment, materials and supplies incorporated in or used in connection with the products and services authorized for sale at Papa Ray's Pizza Restaurants. We have also developed standards and specifications for suppliers of certain of the above products, including standards and requirements relating to product quality, prices, consistency, reliability, financial capability, labor relations and customer relations. We will provide you with a list of approved suppliers. You agree that the Papa Ray's Pizza Restaurant will purchase all fixtures, furniture, signs, materials, products and supplies from distributors and suppliers that we have approved (which may include us or our affiliates) and/or that conform to our specifications and standards.
Source: Item 22 — CONTRACTS (FDD pages 39–40)
What This Means (2025 FDD)
According to Aw's 2025 Franchise Disclosure Document, Papa Ray's Pizza does have standards for suppliers, including those related to pricing. Specifically, Aw has developed standards and specifications for suppliers of products used in Papa Ray's Pizza restaurants, which include requirements relating to product quality, prices, consistency, reliability, financial capability, labor relations, and customer relations.
This means that as a franchisee, you are required to purchase fixtures, furniture, signs, materials, products, and supplies from approved distributors and suppliers that meet Aw's standards and specifications. Aw may also approve a single distributor or supplier for any product to obtain lower prices or the best advertising support or services. Aw may also take advantage of discounts offered by a supplier in connection with the acquisition of large quantities of products and resell these products at a profit to you.
Aw retains the right to modify the list of approved products and suppliers, and franchisees must adhere to these modifications. If a franchisee wishes to purchase items from a non-approved supplier, they must submit a written request for approval, which may include an evaluation fee of $250.00. Aw also reserves the right to inspect supplier facilities and products and to revoke approval if the supplier fails to meet their criteria.