Can the provisions in the renewal agreement for an Aw franchise differ from the initial agreement?
Aw Franchise · 2025 FDDAnswer from 2025 FDD Document
- 3.3 Renewal Agreement; Releases.
To renew the franchise, the Company, you and your Owners must sign the then-current form of standard franchise agreement, which agreement will replace this Agreement in all respects, and which may contain royalty fees, advertising fees and other fees and provisions that differ from those contained in this Agreement; any ancillary agreements we are then customarily using in the grant or renewal of franchises for the operation
of Papa Ray's Pizza Restaurants (with appropriate modifications to reflect the fact that the agreement relates to the grant of a renewal franchise); and a general release, in a form satisfactory to us, of any and all claims against us and our affiliates, and our respective officers, directors, shareholders, employees, and agents. If either you or any of your Owners refuse to sign those agreements and releases within thirty (30) days after their delivery, you will be deemed to have elected not to renew the Franchise.
Source: Item 22 — CONTRACTS (FDD pages 39–40)
What This Means (2025 FDD)
According to Aw's 2025 Franchise Disclosure Document, the terms and conditions of the renewal franchise agreement may differ significantly from the initial agreement. To renew the franchise, the franchisee, the Company (presumably Aw itself), and the franchisee's owners must sign the then-current form of standard franchise agreement. This new agreement will completely replace the original agreement and may include different royalty fees, advertising fees, and other fees and provisions.
In addition to the standard franchise agreement, franchisees may also need to sign ancillary agreements that Aw is currently using for new or renewal franchises, with modifications to reflect that it is a renewal. Furthermore, Aw requires a general release of any and all claims against them and their affiliates, including officers, directors, shareholders, employees, and agents.
If the franchisee or any of their owners refuse to sign these new agreements and releases within 30 days of delivery, they will be considered to have elected not to renew the franchise. This means that Aw has the right to change the financial and operational requirements upon renewal, and franchisees must agree to these changes to continue operating under the Aw brand.