What may Aw require regarding the lease for a Papa Ray's Pizza Restaurant site?
Aw Franchise · 2025 FDDAnswer from 2025 FDD Document
You must submit the proposed lease for your site to us for approval before you sign it. We may require that the lease (i) be collaterally assigned to us by a collateral assignment agreement in a form and substance reasonably acceptable to us in order to secure performance of your liabilities and obligations to us and (ii) contain certain terms and conditions as described in the franchise agreement.
Source: Item 8 — RESTRICTIONS ON SOURCES OF PRODUCTS AND SERVICES (FDD pages 19–21)
What This Means (2025 FDD)
According to Aw's 2025 Franchise Disclosure Document, a prospective Papa Ray's Pizza franchisee must submit their proposed lease agreement for Aw's approval before signing it. Aw retains the right to mandate specific conditions within the lease to protect its interests.
Specifically, Aw may require that the lease be collaterally assigned to them through a collateral assignment agreement. This agreement would ensure that the lease is used as security for the franchisee's obligations to Aw. This means that if the franchisee fails to meet their financial or contractual obligations to Aw, Aw could potentially take control of the lease.
Additionally, Aw may require that the lease includes certain terms and conditions as outlined in the franchise agreement. These terms and conditions are designed to ensure that the lease aligns with Aw's operational standards and protects the brand's interests. This provision gives Aw significant control over the lease terms, ensuring they are favorable to the franchise system. Therefore, franchisees need to carefully review the franchise agreement and understand all potential lease requirements before committing to a location.