Does Aw require the proposed assignee to not have any conflicting interests unacceptable to Aw?
Aw Franchise · 2025 FDDAnswer from 2025 FDD Document
- 14.3 Conditions for Approval of Assignment. If you (and your Owners) are in compliance with this Agreement, we will not unreasonably withhold our approval of an assignment, provided that the proposed assignee is, in our opinion, of good moral character and has sufficient business experience, aptitude and financial resources to own and operate a Pap Ray's Restaurant, does not have any conflicting interests unacceptable to us, and otherwise meets our then applicable standards for franchisees.
Source: Item 22 — CONTRACTS (FDD pages 39–40)
What This Means (2025 FDD)
According to Aw's 2025 Franchise Disclosure Document, if a franchisee wishes to assign their franchise agreement to someone else, Aw will not unreasonably withhold approval, provided that the proposed assignee meets certain conditions. One of these conditions is that the proposed assignee must not have any conflicting interests that are unacceptable to Aw.
In addition to lacking conflicting interests, the proposed assignee must be of good moral character, possess sufficient business experience, aptitude, and financial resources to successfully operate a Papa Ray's Restaurant, and meet Aw's then-current standards for franchisees. This means Aw has the right to evaluate the assignee based on its current criteria for new franchisees.
This requirement ensures that any new franchisee taking over an existing Aw location is fully committed to the brand and will not operate any other businesses that could potentially harm or compete with the Aw franchise. It is a fairly standard practice in franchising to ensure brand consistency and protect the franchisor's interests.