During the term of the Aw franchise, can I be involved in any competing business?
Aw Franchise · 2025 FDDAnswer from 2025 FDD Document
| PROVISION | SECTION IN FRANCHISE AGREEMENT | SUMMARY |
|---|---|---|
| q. Non-competition covenants | Section 9.3 | No involvement in competing business |
| during the term of the franchise | anywhere. | |
| r. Non-competition covenants after the franchise is terminated or expires | Section 17.1 | No involvement in a competing business for 2 years within 20 miles of your Papa Ray’s Pizza Restaurant or of any other Papa Ray’s Pizza Restaurant (same restrictions apply after assignment). |
| h. "Cause" defined – non-curable defaults | Section 15.1 | Failure to locate site or open Papa Ray's Pizza Restaurant in time required, failure to satisfactorily complete initial training, abandonment, cease operating for 2 or more days, material misrepresentations, conviction of a felony, dishonest or unethical conduct, unauthorized transfers, unauthorized use or disclosure of confidential information or Operations Manual, unauthorized use of Marks, having interest in competing business, creation of a threat to public health or safety not corrected within 24 hours, 3 or more defaults in any 12 month period, failure to attend training or conference 2 or more times, filing for bankruptcy relief. |
Source: Item 17 — RENEWAL, TERMINATION, TRANSFER, AND DISPUTE RESOLUTION (FDD pages 34–36)
What This Means (2025 FDD)
According to Aw's 2025 Franchise Disclosure Document, as a franchisee, you are not allowed to be involved in any competing business during the term of the franchise agreement. The FDD outlines non-competition covenants that restrict your involvement in any competing business, without specifying a geographic limitation. This means the restriction applies 'anywhere.'
This non-compete agreement is a fairly standard practice in franchising. The purpose is to protect Aw's market share, trade secrets, and customer relationships. If you were allowed to operate a competing business while still a franchisee, it could directly harm Aw's revenue and brand reputation.
In addition to the non-compete during the franchise term, Aw also enforces a non-compete after the franchise is terminated or expires. This post-term covenant restricts involvement in a competing business for 2 years within 20 miles of your Papa Ray’s Pizza Restaurant or of any other Papa Ray’s Pizza Restaurant. It is important to note that having an interest in a competing business is also defined as a 'cause' for default under the franchise agreement, potentially leading to termination.