Who is responsible for the costs of relocation if Aw Papa Ray's Pizza consents to the relocation?
Aw Franchise · 2025 FDDAnswer from 2025 FDD Document
xercise any of these rights within your Protected Area.
The franchise is granted for 1 specific location which must be approved by us. You may not relocate your Papa Ray's Pizza Restaurant without our prior written approval. Our approval will be given if your lease terminates through no fault of yours, the premises are damaged, condemned or otherwise rendered unusable, there is change in the character of the location sufficiently detrimental to the Store's business potential to warrant relocation, or the premises are no longer suitable to meet the full business potential. If we consent to your relocation of your Papa Ray's Pizza Restaurant, you will be responsible for the costs of the relocation and you must pay us a relocation fee of $500 plus any tra
Source: Item 12 — TERRITORY (FDD pages 29–30)
What This Means (2025 FDD)
According to Aw's 2025 Franchise Disclosure Document, if Aw consents to the relocation of a Papa Ray's Pizza Restaurant, the franchisee is responsible for covering all associated costs. Additionally, the franchisee must pay Aw a relocation fee of $500, along with any travel expenses Aw incurs while visiting the proposed new site.
This means that if a franchisee's lease terminates, the premises are damaged, or the location's business potential declines significantly, necessitating a move, the franchisee will bear the financial burden of the relocation. This includes not only the direct costs of moving but also Aw's relocation fee and travel expenses for site visits.
For a prospective Aw franchisee, this highlights the importance of carefully selecting an initial location and negotiating lease terms that provide stability. It also underscores the need to factor in potential relocation costs when assessing the overall financial viability of the franchise. The $500 relocation fee plus travel expenses, while seemingly small, adds to the overall financial responsibility of the franchisee during a relocation.