What section of the Aw franchise agreement discusses the relationship of the parties and indemnification?
Aw Franchise · 2025 FDDAnswer 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.