Can the size of Protected Areas granted to Aw franchisees vary, and if so, why?
Aw Franchise · 2025 FDDAnswer from 2025 FDD Document
The Protected Area granted to you will be a certain mile radius from the Premises identified in Exhibit 1.
The minimum radius that you will be granted is three (3) miles from the Premises.
The criteria for determining the boundaries of the Protected Area include the population density, demographics, the amount of existing competition in the market, major and/or restricting topographical features which clearly define contiguous areas, and/or other factors we deem relevant to the operation of a Papa Ray's Pizza Restaurant.
As a result of these considerations, the size of Protected Areas granted to franchisees may vary.
Notwithstanding the foregoing, in the event the location of the Premises is within 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.
Source: Item 22 — CONTRACTS (FDD pages 39–40)
What This Means (2025 FDD)
According to Aw's 2025 Franchise Disclosure Document, the size of the protected area granted to franchisees can indeed vary. The minimum radius a franchisee will be granted is three miles from their business's premises. However, the document specifies that the criteria for determining the boundaries of these protected areas include factors such as population density, demographics, the amount of existing competition in the market, major topographical features, and other factors Aw deems relevant.
This means that while a franchisee is guaranteed a minimum protected area, the actual size could be larger or smaller depending on a variety of market conditions and demographic factors. For example, a franchisee in a densely populated urban area might have a smaller radius than one in a rural area with less competition.
It's important to note that Aw also reserves the right to grant franchises or operate businesses within limited use facilities, such as airports or shopping centers, even if they fall within a franchisee's protected area. Additionally, Aw retains the right to distribute products and services through alternative channels like supermarkets or the internet, both within and outside the protected area. These stipulations could impact a franchisee's business, especially if their location is near a limited use facility or if Aw expands its distribution channels in the area.