What rights are franchisees granted under Aw's franchise arrangement?

According to the 2025 FDD, Aw's franchise arrangements generally include a license that allows franchisees to operate a Papa Ray's Restaurant for a specific number of years. In exchange, franchisees must pay initial fees and continuing royalties to Aw, which are calculated as a percentage of sales. This arrangement is typical in the franchise industry, where franchisors grant franchisees the right to use their brand, system, and intellectual property in exchange for fees and royalties.

For a prospective Aw franchisee, this means they will be granted the right to operate a Papa Ray's Restaurant for a defined period, which will be specified in the franchise agreement. The franchisee will be obligated to pay both an initial franchise fee and ongoing royalties based on a percentage of their sales. These payments are the cost of doing business under the Aw brand and utilizing their established business model.

It is important for potential franchisees to understand the specific terms and conditions of the franchise agreement, including the length of the franchise term, the amount of the initial franchise fee, and the percentage of sales required for ongoing royalties. Additionally, franchisees should carefully consider the potential risks and benefits of operating a Papa Ray's Restaurant, including the level of support and training provided by Aw, the competitive landscape in their local market, and the potential for profitability.

While the FDD excerpt specifies that franchisees are granted the right to operate a Papa Ray's Restaurant for a specified number of years, it does not specify the exact length of the franchise term. A prospective franchisee should clarify the term length with Aw, as this will impact the long-term viability and potential return on investment of the franchise.