Does Aw's right to inspect the Papa Ray's Pizza Restaurant have any conditions?
Aw Franchise · 2025 FDDAnswer from 2025 FDD Document
t limitation, the charges of attorneys and any independent accountants, and the travel expenses, room and board and applicable per diem charges for our employees. The above remedies are in addition to all our other remedies and rights under this Agreement or under applicable law.
- 13.4 Our Right to Inspect the Papa Ray's Pizza Restaurant. To determine whether you and the Papa Ray's Pizza Restaurant are complying with this Agreement, and with the specifications, standards, and operating procedures we prescribe for the operation of Papa Ray's
Pizza Restaurants, and in order to preserve the validity and integrity of the Marks and to ensure that you are properly using the Marks in the operation of your Papa Ray's Pizza Restaurant, we or our agents have the right, at any reasonable time and without advance notice to you, to: (1) enter and inspect the Premises; (2) observe the operations of the Papa Ray's Pizza Restaurant for such consecutive or intermittent periods as we deem necessary; (3) interview employees of the Papa Ray's Pizza Restaurant; (4) interview customers of the Papa Ray's Pizza Restaurant; (5) to select inventory items, products, materials and supplies for testing and evaluation; and (6) inspect and copy any books, records and documents relating to the operation of the Papa Ray's Pizza Restaurant. You agree to fully cooperate with us in connection with any of those inspections, observations and interviews. You agree to present to your customers any evaluation forms we periodically prescribe and agree to participate and/or request your customers to participate in any surveys performed by or on our behalf.
In the event the Premises and/or your operation of your Papa Ray's Pizza Restaurant are rated unacceptable by us or a qualified third party agent designated by us according to published standards for Papa Ray's Pizza Restaurants based on such inspection, you must reimburse us for any and all costs and expenses connected with the inspection (including, without limitation, reasonable compensation for the third party designated agent). Thereafter, we may conduct additional inspections every thirty (30) days ourselves or through a designated third party agent and you must reimburse us for any and all costs and expenses connected with any and all inspections that result in an unacceptable rating for your Premises or business operations. The foregoing remedies shall be in addition to any other remedies we may have for your failure to comply with the terms of this Agreement.
In addition, we reserve the right to implement a mystery shopper program for the purpose of monitoring product and service quality, assessing compliance with the System, and/or measuring customer satisfaction in Papa Ray's Pizza Restaurants.
14. OWNERSHIP; ASSIGNMENT
- 14.1 Assignment by the Company. This Agreement and the Franchise are fully assignable by us and will inure to the benefit of any assignee or other legal successor to the interest of the Company herein.
- 14.2 By Franchisee With Approval. You understand and acknowledge that the rights and duties created by this Agreement are personal to you and we have granted the franchise in reliance upon the individual or collective character, skill, aptitude, attitude, business ability and financial capacity of you (and your Owners).
Source: Item 22 — CONTRACTS (FDD pages 39–40)
What This Means (2025 FDD)
According to Aw's 2025 Franchise Disclosure Document, Aw has the right to inspect a Papa Ray's Pizza Restaurant to ensure compliance with the franchise agreement, specifications, standards, and operating procedures. This inspection aims to maintain the validity and integrity of the Papa Ray's Pizza Restaurant marks and ensure their proper use. Aw or its agents can conduct these inspections at any reasonable time and without prior notice.
The inspection may include entering and inspecting the premises, observing operations, interviewing employees and customers, selecting inventory for testing, and reviewing books, records, and documents related to the restaurant's operation. However, the records and reports that Aw can inspect and audit do not include the franchisee's employment records for their employees. The franchisee must fully cooperate with Aw during these inspections and audits.
If an inspection reveals an understatement of gross revenue, the franchisee must pay the due marketing contributions plus interest within ten days of receiving the inspection report. If the understatement of gross revenue exceeds two percent or if the inspection was necessary due to the franchisee's failure to provide required reports or information, the franchisee must reimburse Aw for the inspection costs, including attorney and accountant fees, travel expenses, and per diem charges. Additionally, if the Premises and/or the operation of your Papa Ray's Pizza Restaurant are rated unacceptable by Aw or a qualified third party agent designated by them according to published standards for Papa Ray's Pizza Restaurants based on such inspection, the franchisee must reimburse Aw for any and all costs and expenses connected with the inspection, and Aw may conduct additional inspections every thirty (30) days themselves or through a designated third party agent and the franchisee must reimburse Aw for any and all costs and expenses connected with any and all inspections that result in an unacceptable rating for the Premises or business operations.