Who is responsible for the costs associated with developing the Papa Ray's Pizza Restaurant for an Aw franchise?
Aw Franchise · 2025 FDDAnswer from 2025 FDD Document
tions to us for our approval before you begin construction at the Premises, and must construct the Papa Ray's Pizza Restaurant in accordance with those approved plans.
- 4.4 Development of the Papa Ray's Pizza Restaurant. You agree at your own expense to do the following: (1) secure all financing required to fully develop the Papa Ray's Pizza Restaurant; (2) obtain all required building, utility, sign, and business permits and licenses and any other required permits and licenses; (3) construct the Papa Ray's Pizza Restaurant according to the construction plans and specifications we have approved; (4) decorate the Papa Ray's Pizza Restaurant in compliance with plans and specifications we have approved; (5) purchase and install all required fixtures, furniture, equipment, and signs; and (6) purchase an opening inventory of required products, and supplies.
- 4.5 Fixtures, Furniture, Equipment and Signs.
Source: Item 22 — CONTRACTS (FDD pages 39–40)
What This Means (2025 FDD)
According to Aw's 2025 Franchise Disclosure Document, the franchisee is responsible for all costs associated with developing the Papa Ray's Pizza Restaurant. The franchisee must secure all financing required to fully develop the restaurant. This includes obtaining all necessary building, utility, sign, and business permits and licenses.
The franchisee is also responsible for constructing and decorating the Papa Ray's Pizza Restaurant according to Aw's approved construction plans and specifications. This extends to purchasing and installing all required fixtures, furniture, equipment, and signs. Additionally, the franchisee must purchase an opening inventory of required products and supplies.
In summary, the financial burden of establishing the Papa Ray's Pizza Restaurant, from securing permits to purchasing inventory, falls entirely on the franchisee. This is a standard practice in franchising, where the franchisee bears the capital investment costs while Aw provides the brand, system, and support.