Before signing a lease for a Papa Ray's Pizza Restaurant site, what must a franchisee submit to Aw?
Aw Franchise · 2025 FDDAnswer from 2025 FDD Document
You must submit the proposed lease for your site to us for approval before you sign it. We may require that the lease (i) be collaterally assigned to us by a collateral assignment agreement in a form and substance reasonably acceptable to us in order to secure performance of your liabilities and obligations to us and (ii) contain certain terms and conditions as described in the franchise agreement.
Source: Item 8 — RESTRICTIONS ON SOURCES OF PRODUCTS AND SERVICES (FDD pages 19–21)
What This Means (2025 FDD)
According to Aw's 2025 Franchise Disclosure Document, a prospective Papa Ray's Pizza franchisee must submit the proposed lease for their restaurant site to Aw for approval before signing it. This requirement ensures that Aw has oversight over the location and lease terms of each franchise. Aw retains the right to ensure the lease aligns with their standards and protects their interests.
Aw may also require that the lease (i) be collaterally assigned to them via a collateral assignment agreement and (ii) contain specific terms and conditions as outlined in the franchise agreement. This collateral assignment would secure the franchisee's obligations to Aw, providing Aw with additional security in case of default. The specific terms and conditions Aw might require in the lease are detailed in the franchise agreement, which franchisees should carefully review.
This requirement is a fairly standard practice in franchising, as franchisors typically want to ensure that franchisees secure suitable locations with lease terms that are favorable and do not expose either party to undue risk. Prospective franchisees should carefully review the franchise agreement and discuss the lease approval process with Aw to understand the specific criteria and requirements for lease approval.