What is the required action Aw franchisees must take before relocating their store?
Aw Franchise · 2025 FDDAnswer from 2025 FDD Document
| TYPE OF FEE1,3 | AMOUNT | DUE DATE | REMARKS |
|---|---|---|---|
| conference. | conference, and if you fail to do so, the conference fee must still be paid to us. You are responsible for your travel expenses. | ||
| Transfer Fee | $9,000 or $5,000 if the transferee is an existing franchisee approved by us for additional franchises. | Before transfer | Payable when you transfer the franchise, an interest in Papa Ray’s Pizza Restaurant, the assets of Papa Ray’s Pizza Restaurant or an interest in the franchisee; no fee if the transfer is to a corporation owned by you. |
| Renewal Fee | $2,500 | When you sign renewal agreement | Payable if you renew your franchise at the end of the initial term. |
| Audit/Inspection Costs | Cost of audit or inspection, including charges of professional advisors, and travel expenses, room and board and compensation or fees of our employees or agents | Upon billing | Payable if audit necessary because of your failure to file reports, supporting records, financial statements, or other required information in a timely fashion or if any audit reveals an understatement of the reported Gross Sales of greater than 2%. |
| Service Charge | Greater of $150 or the highest interest rate allowed by law not to exceed 1 ½%. | Upon billing | Payable on all overdue accounts due to us. |
| Management Fee | Currently $250 per day, plus expenses; subject to increase | As agreed | Payable to us during period that our appointed manager manages Papa Ray’s Pizza Restaurant, at our option, after 14 days from your receipt of a default notice or 30 days following your death or disability. |
| Fee for supplier approval | $250 | Upon demand | Payable if you request our determination if a supplier meets our approval. |
| Relocation fee | $500 plus any travel expenses incurred by us in visiting the proposed site. | Upon demand | Payable if you relocate your store. You must obtain our prior consent to relocate. |
Source: Item 6 — OTHER FEES (FDD pages 13–16)
What This Means (2025 FDD)
According to Aw's 2025 Franchise Disclosure Document, a franchisee must obtain prior consent from Aw before relocating their store. Additionally, the franchisee is responsible for paying a relocation fee of $500, plus any travel expenses Aw incurs to visit the proposed new site. This fee is payable upon demand from Aw.
This requirement ensures that Aw maintains control over its brand's presence and location strategy. By requiring prior consent, Aw can assess whether the new location aligns with its overall market strategy and brand image. This protects the brand from being associated with unsuitable locations that could negatively impact its reputation and profitability.
The relocation fee covers Aw's expenses in evaluating the proposed new site. This evaluation likely involves assessing factors such as demographics, competition, visibility, and accessibility. The $500 fee, along with travel expenses, helps Aw offset the costs associated with this due diligence process. Franchisees should factor in these costs when considering a relocation, as they can add to the overall expense of moving their business.
It is common practice in franchising for franchisors to have approval rights over the location of franchise units. This allows the franchisor to maintain consistent brand standards and optimize market coverage. The relocation fee is also a fairly standard practice, as it helps to cover the franchisor's costs in evaluating the new location and ensuring it meets their criteria.