What rights 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.
- (d) to acquire or be acquired by a company establishing businesses identical or similar to the Papa Ray's Pizza Restaurants, even if the other business operates, franchises, and/or licenses competitive businesses anywhere, including your Protected Area; and
- (e) to engage in any other business activities not expressly prohibited by this Agreement.
Source: Item 22 — CONTRACTS (FDD pages 39–40)
What This Means (2025 FDD)
According to Aw's 2025 Franchise Disclosure Document, Aw retains significant rights regarding Papa Ray's Pizza Restaurant businesses and franchises outside a franchisee's Protected Area. Aw has the right to grant other Papa Ray's Pizza Restaurant franchises as it deems appropriate in its sole discretion. This means that while a franchisee is granted a Protected Area, Aw is not restricted from establishing additional franchises outside of that area, potentially impacting market reach and customer base.
Aw also reserves the right to conduct business activities, both within and outside the Protected Area, through various channels. These include granting franchises or operating Papa Ray's Pizza Restaurants within limited use facilities such as airports, transportation hubs, stadiums, shopping centers, casinos, military bases, and college campuses. Additionally, Aw can distribute products and services through alternative distribution channels like supermarkets, mail order systems, and the Internet, using the Papa Ray's Pizza Restaurant trademarks.
Furthermore, Aw can establish businesses that are franchised, licensed, or owned by them or their affiliates at any location they deem appropriate. They can also distribute products or services similar to those offered under the Papa Ray's Pizza Restaurant system, using different trade names or trademarks. Aw also has the right to acquire or be acquired by a company that establishes businesses identical or similar to Papa Ray's Pizza Restaurants, even if these businesses compete with existing franchisees, including within their Protected Areas. These stipulations highlight that Aw retains considerable control and flexibility in expanding the Papa Ray's Pizza Restaurant brand and market presence, which could create both opportunities and competitive pressures for individual franchisees.