Does Aw require the proposed assignee to meet Aw's then applicable standards for franchisees?
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, Aw will not unreasonably withhold approval, provided the proposed assignee meets several conditions. One of these conditions is that the proposed assignee must meet Aw's standards for franchisees that are applicable at the time of the assignment.
In addition to meeting Aw's standards for franchisees, the proposed assignee must also be of good moral character, possess sufficient business experience, aptitude, and financial resources to successfully operate a Papa Ray's Restaurant. The assignee must also not have any conflicting interests that are unacceptable to Aw.
These requirements ensure that any new franchisee taking over an existing Aw location is qualified and capable of maintaining the brand's standards and reputation. This protects the Aw brand and the interests of other franchisees within the system. Franchisees looking to sell their Aw franchise should be aware of these requirements and ensure that any potential buyers meet these criteria to facilitate a smooth transfer process.