Under what circumstances does the Assignee have the right to assume the Aw franchise lease and take possession of the premises?
Aw Franchise · 2025 FDDAnswer from 2025 FDD Document
16.5 Assignment of Lease. Upon termination or expiration of this Agreement, at our option you shall immediately assign to us your interest in any lease then in effect for the premises of your Papa Ray's Pizza Restaurant, as you agreed to in the Exhibit 3 Collateral Assignment of Lease.
16.6 De-Identification of Premises. Upon termination or expiration of this Agreement, you agree, in the event you continue to operate or subsequently begin to operate any other business (subject to any restrictions against doing so provided in this Agreement), not to use any reproduction, counterfeit, copy or colorable imitation of the Marks either in connection with such other business or the promotion thereof, which is likely to cause confusion, mistake or deception, or which is likely to dilute our exclusive rights in and to the Marks and further agree not to utilize any designation of origin or description or representation which falsely suggests or represents an association or connection with us so as to constitute unfair competition.
If we do not opt to take assignment of the lease for the Premises upon the expiration or termination of this Agreement, you shall immediately make such
Source: Item 22 — CONTRACTS (FDD pages 39–40)
What This Means (2025 FDD)
According to Aw's 2025 Franchise Disclosure Document, Aw has the option to require the franchisee to assign the lease for the premises of the Papa Ray's Pizza Restaurant to them upon termination or expiration of the Franchise Agreement. This is part of the Collateral Assignment of Lease agreement outlined in Exhibit 3.
In the event of the agreement's termination or expiration, Aw can exercise its option to take over the lease. If Aw chooses not to assume the lease, the franchisee is obligated to make necessary modifications to the premises to eliminate any association between Aw or its system and any subsequent business operated there.
Aw also stipulates conditions regarding the lease of the premises. Aw must approve any lease or sublease before it is executed by the franchisee, and Aw can mandate specific terms and provisions in the lease. These may include ensuring the lease term matches the Franchise Agreement's term, receiving written notice of any franchisee defaults, and having the right to cure defaults and subsequently assign the lease to Aw. The lease must also permit the use of required signs and restrict the premises to only operating a Papa Ray's Pizza Restaurant, preventing the lessor from leasing to competing businesses in the same shopping center.