What rights does Aw reserve both within and outside of the Protected Area?
Aw Franchise · 2025 FDDAnswer from 2025 FDD Document
a limited use facility, your Protected Area shall be limited to the limited use facility (as defined below) in which your Papa Ray's Pizza Restaurant is located.
- 2.4 Our Reservation of Rights. 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 the 2025 FDD, Aw retains specific rights both within and outside a franchisee's protected area. Aw has the right to grant Papa Ray's Pizza Restaurant franchises or operate their own restaurants within limited use facilities, such as airports, transportation facilities, stadiums, enclosed shopping centers, casinos, military bases, and college campuses, both inside and outside the franchisee's protected area. This means that even within your protected area, Aw could establish a location in one of these limited use facilities.
Additionally, Aw reserves the right to distribute products and services, whether or not they are part of the Papa Ray's Pizza system, through alternative distribution channels using their trademarks. These channels include supermarkets, retail facilities, mail order systems, and the internet. 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 offered under the Papa Ray's Pizza system, but under different trade names and trademarks.
Furthermore, Aw 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 operate competitive businesses anywhere, including within a franchisee's protected area. Finally, Aw reserves the right to engage in any other business activities not expressly prohibited by the franchise agreement. These reservations of rights allow Aw to pursue various business opportunities and strategies without being restricted by the protected areas granted to franchisees, which could potentially increase competition for franchisees.