Under what circumstances does Aw define 'cause' for termination as non-curable?
Aw Franchise · 2025 FDDAnswer from 2025 FDD Document
| PROVISION | SECTION | SUMMARY |
|---|---|---|
| IN FRANCHISE AGREEMENT | ||
| 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, there are several circumstances that Aw defines as 'cause' for termination that are non-curable, meaning the franchisee does not have an opportunity to fix the issue and prevent termination of the franchise agreement. These non-curable causes include failing to locate a site or open a Papa Ray's Pizza Restaurant in the required timeframe, failing to satisfactorily complete initial training, or abandoning the business.
Additionally, Aw considers the following as non-curable causes for termination: ceasing operations for two or more days, making material misrepresentations, being convicted of a felony, engaging in dishonest or unethical conduct, performing unauthorized transfers, or using or disclosing confidential information or the Operations Manual without authorization. Further non-curable causes include unauthorized use of Aw's Marks, having an interest in a competing business, creating a threat to public health or safety that is not corrected within 24 hours, incurring three or more defaults within a 12-month period, failing to attend required training or conferences two or more times, and filing for bankruptcy relief.
These stipulations in the franchise agreement are important for a prospective Aw franchisee to understand. If any of these non-curable defaults occur, Aw has the right to terminate the franchise agreement immediately, which could result in significant financial losses for the franchisee. It is crucial to adhere to all terms and conditions outlined in the franchise agreement and maintain open communication with Aw to avoid any potential issues that could lead to termination.