What is the role of the 'Assignor' in the Collateral Assignment of Lease for an Aw franchise?
Aw Franchise · 2025 FDDAnswer from 2025 FDD Document
ee may further assign the Lease to a person, firm or corporation who has been granted a franchise by Assignee and who agrees to assume the lessee's obligations assignment Assignee | | Dated: | | | | | CORPORATE SIGNATURE: | | | | ATTEST: | | | | a | | corporation | | | By: | | | | By: | | | | | | | | | | | | |
EXHIBIT 4 TO THE FRANCHISE AGREEMENT
CONDITIONAL ASSIGNMENT OF TELEPHONE NUMBERS AND SOCIAL MEDIA ACCOUNTS
| Franchisee (Assignor):, whose business address is, in consideration of the granting of a franchise to Assignor contemporaneously herewith, and other valuable consideration paid by Rayyan Pizza Franchise, LLC, an Illinois limited liability company (Franchisor/Assignee), hereby assigns unto the Assignee (i) all telephone numbers and listings utilized by Assignor in the operation of Assignor's PAPA RAY'S PIZZA restaurant at Assignor's address above-referenced and (ii) all accounts with social media platforms or networks, including passwords and log-in information. WINGS" and the associated marks are solely the property of Franchisor/Assignee. Assignor's right to use any telephone numbers and directory listings and social media accounts associated with "PAPA RAY'S PIZZA & WINGS" trademarks and service marks was solely due to a limited license granted by Assignee/Franchisor in connection with the Assignee/Franchisor's trademark(s)/service mark(s) pursuant to a Franchise Agreement. Once said license has expired and/or terminated pursuant to the expiration or termination of the Franchise Agreement, Assignor has no right to the telephone number or directory listing or social media accounts associated with the Assignee/Franchisor's trademark, including, but not limited to PAPA RAY'S PIZZA & WINGS. | Assignor acknowledges that "PAPA RAY'S PIZZA & As such, | |---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------------------------------------------------------------------| | This Assignment shall constitute authorization to the appropriate telephone company to change | | | and transfer to Franchisor/Assignee all of Assignor's rights in and to the use of said business | | | telephone lines to the appropriate social media companies to change and transfer to | | | Franchisor/Assignee all of Assignor's rights in and to the use of said social media account, and | | | Assignor hereby irrevocably appoints and authorizes Franchisor/Assignee to act as Assignor's | | | attorney-in-fact and hereby empowers Franchisor/Assignee to execute such instruments in the | | | Assignee's name in order to give full effect to this Assignment and to effectuate any transfer. | | | Upon the Assignment, the Assignee hereby assumes the performance of all of the terms, covenants | if Assignee had originally been issued such social media accounts. | | and conditions of the telephone company with respect to such telephones, telephone numbers and | | | telephone listings with the full force and effect as if the Assignee had been originally issued such | | | telephones, telephone numbers, telephone listings and the usage thereof and all of the terms, | | | covenants and conditions of the social media companies with respect to the social media accounts | | | with full force and effect as | | | ASSIGNOR (Franchisee): | ASSIGNEE (Franchisor): RAYYAN PIZZA FRANCHISE LLC | | By: | By: |
Exhibit F
STATE ADDENDUM
Some administrators of franchise registration states may require us to enter into an addendum to the Disclosure Document and/or the Franchise Agreement describing certain state laws or regulations which may supersede the Disclosure Document or Franchise Agreement. If you are in a registration state which requires an addendum, it will be found in this exhibit.
RAYYAN PIZZA FRANCHISE LLC ADDENDUM TO FRANCHISE DISCLOSURE DOCUMENT FOR THE STATE OF ILLINOIS
The Rayyan Pizza Franchise LLC Franchise Disclosure Document for use in the State of Illinois is modified in accordance with the following:
Illinois law shall apply to and govern the Franchise Agreement.
In conformance with Section 4 of the Illinois Franchise Disclosure Act, any provision in a franchise agreement that designates jurisdiction and venue in a forum outside of the State of Illinois is void. However, a franchise agreement may provide for arbitration to take place outside of Illinois.
Franchisee's rights upon Termination and Non-renewal are set forth in Sections 19 and 20 of the Illinois Franchise Disclosure Act.
In conformance with Section 41 of the Illinois Franchise Disclosure Act, any condition, stipulation or provision purporting to bind any person acquiring any franchise to waive compliance with the Illinois Franchise Disclosure Act or any other law of Illinois is void.
Payment of the Initial Franchise Fee will be deferred until Franchisor has met its initial obligations to franchisee, and franchisee has commenced doing business. This financial assurance requirement was imposed by the Office of the Illinois Attorney General due to Franchisor's financial condition.
No statement, questionnaire, or acknowledgment signed or agreed to by a franchisee in connection with the commencement of the franchise relationship shall have the effect of (i) waiving any claims under any applicable state franchise law, including fraud in the inducement, or (ii) disclaiming reliance on any statement made by any franchisor, franchise seller, or other person acting on behalf of the franchisor. This provision supersedes any other term of any document executed in connection with the franchise.
Source: Item 22 — CONTRACTS (FDD pages 39–40)
What This Means (2025 FDD)
According to Aw's 2025 Franchise Disclosure Document, the Assignor in the Collateral Assignment of Lease is essentially the franchisee. The franchisee, in consideration of being granted the Aw franchise, assigns their rights, title, and interest in the lease to Rayyan Pizza Franchise LLC, the franchisor/assignee. This assignment includes all telephone numbers, listings, and social media accounts used in the operation of the Papa Ray's Pizza restaurant. The franchisee acknowledges that the use of these assets is solely due to a limited license granted by Aw. Upon expiration or termination of the Franchise Agreement, the franchisee loses all rights to these assets.
This agreement authorizes the telephone and social media companies to transfer all rights to Aw. The franchisee irrevocably appoints Aw as their attorney-in-fact to execute any instruments necessary to effect this transfer. Upon assignment, Aw assumes all terms and conditions of the telephone and social media companies as if they were the original account holder. The Assignor also agrees to indemnify Assignee against and to reimburse Assignee for all valid claims, obligations, losses, damages and taxes occurring or accruing on or prior to the date upon which Assignee assumes the Lease and for all costs reasonably incurred by Assignee in defense of any such valid claim brought against it or in any action concerning such a claim in which Assignee is made a party, including without limitation, reasonable attorneys' and expert witness fees, costs of investigation and proof of facts, court costs and other litigation expenses to include travel and living expenses.
This collateral assignment is for security purposes, meaning Aw has no liability or obligation related to the lease unless it chooses to assume the franchisee's rights and obligations under the lease. Aw can make this election by notifying both the lessor and the franchisee in writing. The Collateral Assignment of Lease remains in effect for the full term of the lease, including any renewals or extensions, and becomes null and void upon the lease's expiration.
For a prospective Aw franchisee, this means that the franchisor maintains significant control over the restaurant's location and branding assets. If the franchisee defaults on the lease or the franchise agreement is terminated, Aw can step in and take over the lease and associated assets. This arrangement protects Aw's interests and ensures consistency across all franchise locations. Franchisees should carefully review the terms of the Collateral Assignment of Lease and understand their obligations before signing the agreement.