Is there an exception to the assignment restrictions for Aw franchisees?
Aw Franchise · 2025 FDDAnswer from 2025 FDD Document
ecifications as prescribed by us.
Our consent to an assignment of any interest subject to the restrictions of Paragraph 14.2 or 14.3 will not constitute a waiver of any claims we may have against the assignor, nor will it be deemed a waiver of our right to demand exact compliance with any of the terms or conditions of this Agreement by the assignee.
- 14.4 Death or Disability of Franchisee. Upon the death or permanent disability of you (or any of your Owners), the executor or other personal representative of such person must transfer such person's interest within a reasonable time, not to exceed six (6) months from the date of death or permanent disability, to a person approved by us. Such transfers, including, without limitation, transfers by devise or inheritance, will be subject to all the terms and conditions for assignments and transfers contained in Paragraphs 14.2 and 14.3. Failure to transfer such interest within the required period of time will constitute grounds for termination under Section 15. Prior to such transfer, the executor or other personal representative of such person, or the remaining Owners, must appoint a competent manager within a reasonable time, not to exceed thirty (30) days from the date of death or permanent disability. The appointment of this manager is subject to our prior written approval, and this manager must, if requested by us, attend and satisfactorily complete our training program. If Papa Ray's Pizza Restaurant is not being managed by a manager approved by us within thirty (30) days after the death or permanent disability, we are authorized, but we are not required, to immediately appoint a manager to maintain the operations of Papa Ray's Pizza Restaurant. Our appointment of a manager for your Papa Ray's Pizza Restaurant will not relieve you of your obligations under this Agreement, and we will not be liable for any debts, losses, costs or expenses incurred in the operation of your Papa Ray's Pizza Restaurant or to any of your creditors for any products, materials, supplies or services purchased by your Papa Ray's Pizza Restaurant during any period in which it is managed by the manager appointed by us. We have the right to charge a reasonable non-refundable fee for such management services and to cease providing such management services at any time.
- 14.5 **Entity as Franchisee;
Source: Item 22 — CONTRACTS (FDD pages 39–40)
What This Means (2025 FDD)
According to Aw's 2025 Franchise Disclosure Document, there are some exceptions to the assignment restrictions for franchisees. Specifically, Paragraph 14.5 outlines that if the franchisee is a corporation, limited liability company, or partnership, they must be duly organized and validly existing in good standing under the laws of their state of incorporation or organization.
Additionally, Paragraph 14.4 addresses the death or permanent disability of a franchisee or owner. In such cases, the executor or personal representative must transfer the interest within six months to a person approved by Aw. These transfers are subject to the standard assignment and transfer terms outlined in Paragraphs 14.2 and 14.3. Failure to transfer the interest within the specified time frame can lead to termination of the franchise agreement. During this period, a competent manager, approved by Aw, must be appointed within 30 days to oversee the Papa Ray's Pizza Restaurant operations.
Finally, there is a transfer fee exception. If the assignee is an existing Aw franchisee approved for an additional franchise, the transfer fee is $5,000.00, rather than the standard $9,000.00. These exceptions provide some flexibility in ownership transfer under specific circumstances, but franchisees must still adhere to Aw's approval processes and conditions.