factual

What statement must an Aw franchisee prominently display on the premises?

Aw Franchise · 2025 FDD

Answer from 2025 FDD Document

  • 8.2 No Employment Relationship. You shall prominently display, by posting of a sign within public view, on or in the Premises, a statement that clearly indicates that the Papa Ray's Pizza Restaurant is independently owned and operated by you as our franchisee. You expressly

acknowledge that we are not your employer or an employer of any of your employees. In addition, we are not a joint employer with you. You acknowledge that our training, guidance, advice and assistance, your obligations under this Agreement and the standards, specifications, policies and procedures required by us hereunder and in the Operations Manual are imposed not for the purpose of exercising control over you but rather for the limited purpose of protecting the Marks and Confidential Information, goodwill and brand consistency. You are solely responsible for the management of the Papa Ray's Pizza Restaurant as an independent franchise owner/operator.

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

What This Means (2025 FDD)

According to Aw's 2025 Franchise Disclosure Document, franchisees are required to prominently display a statement indicating that the Papa Ray's Pizza Restaurant is independently owned and operated by them as a franchisee. This statement must be displayed by posting a sign within public view on or in the premises. Additionally, the franchisee must acknowledge that Aw is not their employer or an employer of any of their employees, and that Aw is not a joint employer.

This requirement serves to clarify the relationship between Aw and its franchisees, emphasizing their independent contractor status. By informing customers and employees that the restaurant is owned and operated independently, it helps to avoid any confusion about liability or responsibility for the business's operations. This is a common practice in franchising, as it protects the franchisor from potential legal issues related to employment or business management.

The FDD also states that Aw's training, guidance, advice, and assistance, along with the franchisee's obligations under the agreement and the standards, specifications, policies, and procedures required by Aw, are imposed to protect the Marks and Confidential Information, goodwill, and brand consistency. This further reinforces the independent nature of the franchise operation, clarifying that Aw's oversight is for brand protection rather than direct control over the franchisee's business management. The franchisee is solely responsible for the management of 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.