What release must the assignor and their owners execute in favor of Aw for an assignment to be approved?

According to Aw's 2025 Franchise Disclosure Document, for an assignment of a franchise to be approved, the assignor (the current franchisee) and their owners must execute a general release in favor of Aw and its affiliates, officers, directors, employees, and agents. This release must be in a form that is satisfactory to Aw.

In practical terms, this means that if a franchisee wants to sell their Aw franchise to someone else, they (and their owners) must sign a document releasing Aw from any and all claims they might have against the company. This is a standard practice in franchising to protect the franchisor from potential future lawsuits or liabilities arising from the franchisee's operation of the business. The specific language and scope of the release will be determined by Aw.

This requirement protects Aw by preventing the outgoing franchisee from suing them after the assignment. However, it places the burden on the franchisee to ensure they have no outstanding issues or potential claims against Aw before proceeding with the assignment. Franchisees should carefully review the release document with legal counsel to understand its implications fully before signing.

It is important for prospective franchisees to understand this requirement, as it could impact their ability to sell their franchise in the future. They should also be aware that Aw must approve the material terms of the assignment and determine that the price and payment terms will not negatively affect the future operations of the Papa Ray's Pizza Restaurant by the assignee.