What releases must an Aw franchisee and their owners sign to renew the franchise?
Aw Franchise · 2025 FDDAnswer from 2025 FDD Document
ny period of time necessary in order to provide you reasonable time to cure the deficiencies or to provide the six (6) month non-renewal notice required under this Agreement.
- 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.
Source: Item 22 — CONTRACTS (FDD pages 39–40)
What This Means (2025 FDD)
According to Aw's 2025 Franchise Disclosure Document, to renew the franchise agreement, both the franchisee and their owners must sign several documents. These include the then-current form of Aw's standard franchise agreement, which will completely replace the existing agreement. This new agreement may have different royalty fees, advertising fees, and other provisions compared to the original agreement. Franchisees and their owners must also sign any ancillary agreements that Aw is using at the time for granting or renewing franchises, with modifications to reflect that it is a renewal.
In addition to the updated franchise and ancillary agreements, franchisees and their owners must sign a general release. This release must be in a form that Aw finds satisfactory, and it covers any and all claims against Aw, its affiliates, and their respective officers, directors, shareholders, employees, and agents. This means the franchisee is giving up their right to sue Aw for any reason.
The FDD states that if either the franchisee or any of their owners refuse to sign these agreements and releases within 30 days of receiving them, the franchisee will be considered to have chosen not to renew the franchise. This condition underscores the importance of carefully reviewing all renewal documents and understanding the implications of the general release before signing. Franchisees should seek legal counsel to fully understand their rights and obligations during the renewal process.
This requirement is not uncommon in franchising, as franchisors often update their agreements and seek to resolve any potential disputes before entering into a new franchise term. However, franchisees should be aware of the potential for changes in fees and other terms, as well as the comprehensive nature of the general release, before committing to a renewal.