What specifications and standards must a substitute premises meet for Aw franchise renewal?
Aw Franchise · 2025 FDDAnswer from 2025 FDD Document
another Papa Ray's Pizza Restaurant in the former Protected Area or (iii) terminate this Agreement upon delivery of written notice to you.
3. RENEWAL OF FRANCHISE
- 3.1 Franchisee's Right to Renew. Subject to the provisions of Paragraph 3.2 below, and if you have substantially complied with all provisions of this Agreement and any other agreement between us, then on expiration of the initial term of the Franchise, you will have the right to renew the Franchise for one (1) additional successive term of ten (10) years if: (1) you maintain possession of the Premises, or (2) you are unable to maintain possession of the Premises or in our judgment the Papa Ray's Pizza Restaurant should be relocated, and you secure an approved substitute premises and agree to expeditiously develop the substitute premises in compliance with specifications and standards then applicable under new or renewal franchises for Papa Ray's Pizza Restaurants. You and your Owners must also comply with our then-current training requirements and attend such training classes as we deem necessary. We will charge you a renewal fee of Two Thousand Five Hundred Dollars ($2,500.00) for services we render to you and expenses we incur in conjunction with the renewal.
- 3.2 Notice of Renewal and Nonrenewal. You must give us written notice of your election to exercise your option to renew at least nine (9) months before the end of the term of this Agreement. Within sixty (60) days of our receipt of your notice, we agree to give you written notice of any deficiencies in your operation or historical performance of the Papa Ray's Pizza Restaurant which could cause us not to renew the Franchise. Our notice will state what actions, if any, you must take to correct the deficiencies in your operation of the Papa Ray's Pizza Restaurant or of the Premises and will specify the time period in which those deficiencies must be corrected.
Source: Item 22 — CONTRACTS (FDD pages 39–40)
What This Means (2025 FDD)
According to Aw's 2025 Franchise Disclosure Document, if a franchisee is unable to maintain possession of their current premises or Aw believes the restaurant should be relocated, the franchisee must secure an approved substitute premises to renew their franchise agreement. This new location must be developed in compliance with the specifications and standards that are applicable under new or renewal franchises for Aw restaurants at that time.
In addition to securing an approved substitute premises, the franchisee and their owners must comply with Aw's then-current training requirements and attend any training classes that Aw deems necessary. The franchisee will also be required to pay a renewal fee of $2,500 for the services Aw renders and the expenses it incurs during the renewal process.
As a condition for renewal, the franchisee must also make reasonable capital expenditures to remodel, upgrade, and redecorate the premises. This ensures the Aw restaurant reflects the current image intended by the company, including trade dress, color schemes, layout, fixtures, furniture, equipment, and presentation of the Marks. All remodeling, replacements, upgrades, and redecoration must be done according to the standards and specifications prescribed by Aw, with their prior written approval. This is in addition to the franchisee's ongoing obligations to maintain the condition and appearance of the premises during the term of the agreement.