In the Aw Papa Ray's Pizza & Wings Franchise Agreement, what is the significance of the 'Agreement Date'?
Aw Franchise · 2025 FDDAnswer from 2025 FDD Document
is being presented to you because of the desire you have expressed to obtain the right to develop, own and be franchised to operate a Papa Ray's Pizza Restaurant.
2. GRANT OF FRANCHISE
2.1 Term. You have applied for a franchise to own and operate a Papa Ray's Pizza Restaurant at one site approved by us in the following general area (when the exact location is determined, the parties will complete Exhibit 1 attached hereto):
_________________________________. We have approved your application in reliance on all of the representations you made in that application. As a result, and subject to the provisions of this Agreement, we grant to you a franchise (the "Franchise") to operate a restaurant using the Marks ("Papa Ray's Pizza Restaurant") and to use the System in the operation of that Papa Ray's Pizza Restaurant, for a term of ten (10) years commencing on the Agreement Date, unless this Agreement terminates before the end of such term as provided in Section 16 of this Agreement. Termination or expiration of this Agreement will constitute a termination or expiration of your Franchise. (All references to the "term" of this Agreement refer to the period from the Agreement Date, to the date on which this Agreement actually terminates or expires.)
- 2.2 Full Term Performance. You specifically agree to be obligated to operate the Papa Ray's Pizza Restaurant, perform the obligations of this Agreement, and continuously exert your best efforts to promote and enhance the Papa Ray's Pizza Restaurant and to affect the widest and best possible distribution of products and services from your Papa Ray's Pizza Restaurant within the Protected Territory, for the full term of this Agreement.
- 2.3 Protected Area.
Source: Item 22 — CONTRACTS (FDD pages 39–40)
What This Means (2025 FDD)
According to Aw's 2025 Franchise Disclosure Document, the 'Agreement Date' marks the commencement of the 10-year franchise term. The franchise agreement begins on this date, granting the franchisee the right to operate a Papa Ray's Pizza Restaurant using Aw's trademarks and system. This date is significant because it sets the timeline for the franchisee's rights and obligations under the agreement.
The agreement specifies that the franchisee is obligated to operate the Papa Ray's Pizza Restaurant and fulfill the agreement's requirements for the entire 10-year term, continuously working to promote the restaurant and maximize the distribution of its products and services within the protected territory. The 'Agreement Date' is therefore the starting point for measuring the franchisee's commitment to these obligations.
Furthermore, the 'Agreement Date' is tied to the franchisee's protected area. As long as the agreement remains in effect and the franchisee is not in default, Aw will not establish another Papa Ray's Pizza Restaurant or franchise within the protected area, as defined in Exhibit 1 of the agreement. This protection lasts for the duration of the franchise term, which begins on the 'Agreement Date'.
Finally, the agreement also states that the termination or expiration of the agreement will constitute a termination or expiration of the franchise. All references to the "term" of this Agreement refer to the period from the Agreement Date, to the date on which this Agreement actually terminates or expires.