What right does Aw reserve regarding Papa Ray's Pizza Restaurant businesses and franchises outside the Protected Area?
Aw Franchise · 2025 FDDAnswer from 2025 FDD Document
We have the right to grant outside of the Protected Area such other Papa Ray's Pizza Restaurant businesses and franchises as we, in our sole and exclusive discretion, deem appropriate.
We and any affiliates reserve the right, both within and outside of the Protected Area to:
- (a) grant a Papa Ray's Pizza Restaurant franchise or operate ourselves or through an affiliate a Papa Ray's Pizza Restaurant located within a limited use facility.
A limited use facility includes those located within airports, railroad stations or other transportation facilities; stadiums, racetracks or other sport facilities; enclosed shopping centers; casinos; theaters, auditoriums, amusement parks or other entertainment facilities; military bases; and college campuses; and similar types of captive locations;
- (b) distribute products and services which comprise, may in the future comprise or which do not comprise, a part of the System through any alternative distribution channels including,
but not limited to, supermarkets and other retail facilities, mail order systems, the Internet or similar electronic media, using the Marks ("Alternate Distribution Channels");
- (c) establish businesses which are franchised, licensed or owned by us or any affiliate at any locations we deem appropriate or distribute products or services which are similar to the products and services offered under the System under trade names, trademarks, service marks, trade dress or other commercial symbols other than the Marks.
Source: Item 22 — CONTRACTS (FDD pages 39–40)
What This Means (2025 FDD)
According to Aw's 2025 Franchise Disclosure Document, Aw retains specific rights regarding Papa Ray's Pizza Restaurant businesses and franchises outside a franchisee's protected area. Aw has the right to grant franchises or operate Papa Ray's Pizza Restaurants themselves, or through affiliates, outside of a franchisee's protected area, as they deem appropriate. This means that while a franchisee is granted a protected area, Aw is not restricted from establishing additional locations outside of that area, which could potentially impact the franchisee's business.
Aw also reserves the right to grant Papa Ray's Pizza Restaurant franchises or operate within limited use facilities, both inside and outside the Protected Area. These facilities include locations such as airports, transportation hubs, sports facilities, shopping centers, casinos, entertainment venues, military bases, and college campuses. This exception allows Aw to penetrate markets that a typical franchisee might not be able to access, but it also means that a franchisee's protected area may not prevent the establishment of an Aw location in these specific types of venues.
Furthermore, Aw can distribute products and services through alternative channels, such as supermarkets, retail facilities, mail order systems, and the Internet, using the Papa Ray's Pizza Restaurant trademarks. Aw can also establish businesses that are franchised, licensed, or owned by them or their affiliates at any location they deem appropriate. These businesses can offer products or services similar to those under the Papa Ray's Pizza Restaurant system, but under different trade names and commercial symbols. These rights allow Aw to diversify its distribution methods and brand presence, but also introduce potential competition for franchisees.