Can Aw terminate the franchise agreement if an Owner of the franchise engages in any unethical conduct?

According to Aw's 2025 Franchise Disclosure Document, Aw can terminate the franchise agreement without an opportunity to cure if an owner engages in dishonest or unethical conduct. Specifically, if an owner is convicted of or pleads no contest to a felony, or engages in any dishonest or unethical conduct that may adversely affect the reputation of Aw, the Papa Ray's Pizza Restaurant, the System, or the goodwill associated with the Marks, Aw has the right to terminate the agreement immediately.

This means that Aw franchisees and their owners must maintain high ethical standards to avoid immediate termination of their franchise agreement. The definition of "unethical conduct" is subjective and could be interpreted broadly by Aw, creating a potential risk for franchisees.

It is important for prospective franchisees to understand what Aw considers unethical conduct and how it could impact their franchise agreement. Franchisees should seek legal counsel to fully understand the implications of this clause and to ensure they have a clear understanding of what actions could lead to termination.