What representation does the franchisee make regarding receipt of the Aw Franchise Agreement?

According to Aw's 2025 Franchise Disclosure Document, the franchisee acknowledges receiving the Papa Ray's Pizza Franchise Disclosure Document. This acknowledgment includes confirmation that the franchisee received the disclosure document issued on April 23, 2025, along with several exhibits. These exhibits include a list of state agencies and agents for service of process, the Franchise Agreement itself with all its exhibits, financial statements, a list of current franchisees and affiliate-owned locations, the table of contents for the operations manual, and any applicable state addenda.

This representation is crucial because it confirms that the franchisee has been provided with essential information necessary to make an informed decision about investing in the Aw franchise. By signing the receipt, the franchisee is essentially stating they have had access to the key documents outlining the terms, conditions, and obligations of the franchise agreement, as well as important details about Aw's operations and financial health. This helps to protect both the franchisee and Aw by establishing a clear record of what information was provided.

The franchisee's acknowledgment also serves as a safeguard against potential future disputes. If a franchisee later claims they were not aware of certain terms or conditions, Aw can point to the signed receipt as evidence that the franchisee had access to all relevant documents. However, the disclosure document also states that if it was not delivered on time, contains false or misleading statements, or has material omissions, a violation of federal and state law may have occurred and should be reported to the Federal Trade Commission and the appropriate state agency.

It is standard practice in the franchise industry for franchisors to require franchisees to acknowledge receipt of the Franchise Disclosure Document (FDD) and related agreements. This practice ensures compliance with federal and state franchise laws, which mandate that prospective franchisees receive detailed information about the franchise opportunity before making a financial commitment. The receipt serves as documented proof that Aw has met its legal obligations in providing full disclosure to the franchisee.