What is the requirement for franchisees regarding the submission of the proposed lease for their site to Aw before signing it for Papa Ray's Pizza Restaurants?
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 franchisee must submit the proposed lease for their Papa Ray's Pizza Restaurant site to Aw for approval before signing it. This requirement ensures that the location meets Aw's standards and protects their interests.
Aw may also require the lease to be collaterally assigned to them through a collateral assignment agreement. This agreement would secure the franchisee's liabilities and obligations to Aw. Additionally, Aw may stipulate that the lease includes specific terms and conditions as outlined in the franchise agreement.
This provision is fairly common in franchising, as franchisors often want to ensure that the franchisee's lease terms are favorable and do not create undue risk for either party. By maintaining control over lease terms, Aw can protect its brand and ensure the franchisee's long-term success. Franchisees should carefully review the franchise agreement and consult with legal counsel to fully understand the implications of these lease requirements.