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What section of the Aw franchise agreement discusses the relationship of the parties and indemnification?

Aw Franchise · 2025 FDD

Answer from 2025 FDD Document

SECTION PAGE
1. INTRODUCTION 1
2. GRANT OF FRANCHISE 1
3. RENEWAL 4
4. DEVELOPMENT AND OPENING OF THE SHOP 5
5. TRAINING 7
6. OPERATING ASSISTANCE; OPERATIONS MANUAL 8
7. MARKS 9
8. RELATIONSHIP OF THE PARTIES; INDEMNIFICATION 11
9. CONFIDENTIAL INFORMATION; NON-COMPETITION 13
10. FEES AND ROYALTIES 14
11. OPERATING STANDARDS 17
12. ADVERTISING 23
13. ACCOUNTING, REPORTING, INSPECTIONS AND AUDITS 25
14. OWNERSHIP; ASSIGNMENT 26
15. TERMINATION OF THE FRANCHISE 30
16. RIGHTS AND OBLIGATIONS OF COMPANY AND FRANCHISEE UPON TERMINATION OR EXPIRATION OF THE FRANCHISE 32
17. POST-TERM COVENANT NOT TO COMPETE 35
18. DISPUTE RESOLUTION 36
19. MISCELLANEOUS 38
20. ACKNOWLEDGEMENTS 41

Source: Item 22 — CONTRACTS (FDD pages 39–40)

What This Means (2025 FDD)

According to Aw's 2025 Franchise Disclosure Document, Section 8 of the franchise agreement, titled "RELATIONSHIP OF THE PARTIES; INDEMNIFICATION," outlines the specifics regarding the relationship between Aw and its franchisees, as well as indemnification responsibilities. This section is found on page 11 of the agreement.

Specifically, this section clarifies that the franchise agreement does not establish a fiduciary relationship between Aw and the franchisee. Instead, it emphasizes that both parties are independent contractors. This means that neither party is considered an agent, joint venturer, partner, or employee of the other for any purpose. The franchisee is required to identify themselves as the owner of the Papa Ray's Pizza Restaurant operating under a franchise agreement with Aw in all dealings with customers, suppliers, and other parties.

Furthermore, the franchisee must prominently display a statement indicating that the restaurant is independently owned and operated. Aw is not considered the employer of the franchisee or their employees. The training, guidance, and standards provided by Aw are intended to protect the brand's marks, confidential information, goodwill, and consistency, rather than to exert control over the franchisee's management of the restaurant. The franchisee is solely responsible for managing the Papa Ray's Pizza Restaurant as an independent franchise owner/operator.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.