Are transfers due to death or disability of an Aw franchisee subject to the same assignment and transfer terms as other transfers?
Aw Franchise · 2025 FDDAnswer from 2025 FDD Document
- 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.
Source: Item 22 — CONTRACTS (FDD pages 39–40)
What This Means (2025 FDD)
According to Aw's 2025 Franchise Disclosure Document, transfers of a franchise due to the death or permanent disability of the franchisee (or any of the franchisee's owners) are subject to the same terms and conditions as other assignments and transfers. The executor or personal representative is required to transfer the interest within six months to a person approved by Aw. Failure to transfer within this time frame can result in termination of the franchise agreement.
Prior to the transfer, the executor or representative must appoint a competent manager within 30 days of the death or disability, subject to Aw's approval. If requested by Aw, this manager must complete the training program. If a manager approved by Aw is not appointed within 30 days, Aw is authorized to appoint one to maintain operations, although they are not required to do so.
It is important to note that Aw's appointment of a manager does not relieve the franchisee of their obligations under the agreement, and Aw is not liable for any debts or expenses incurred during the period managed by their appointed manager. Aw has the right to charge a reasonable non-refundable fee for these management services and can cease providing them at any time.