Does Aw require the proposed assignee to have sufficient aptitude to own and operate a Papa Ray's Restaurant?
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 assess the proposed assignee. Aw will not unreasonably withhold approval of an assignment if the proposed assignee has sufficient aptitude to own and operate a Papa Ray's Restaurant.
In addition to aptitude, Aw also assesses whether the proposed assignee is of good moral character, has sufficient business experience and financial resources, and does not have any conflicting interests that are unacceptable to Aw. The proposed assignee must also meet Aw's then-applicable standards for franchisees.
These requirements are typical in franchising, as franchisors want to ensure that any new franchisee taking over an existing location is well-qualified to maintain the brand's standards and reputation. This protects the overall franchise system.