Under what circumstances do franchise laws apply to the Aw franchise?
Aw Franchise · 2025 FDDAnswer from 2025 FDD Document
| PROVISION | SECTION IN FRANCHISE AGREEMENT | SUMMARY |
|---|---|---|
| n. Franchisor’s right of first refusal | Section 14.6 | We can match any offer for your business or an |
| to acquire franchisee’s business | ownership interest in you. | |
| o. Franchisor’s option to purchase franchisee’s business | Section 16.7 | We may within 30 days of termination or expiration purchase certain assets of your Papa Ray’s Pizza Restaurant at lesser of cost or fair market value. |
| p. Death or disability of franchisee | Section 14.4 | Franchise or ownership interest in you must be assigned to approved buyer within 6 months. |
| q. Non-competition covenants | Section 9.3 | No involvement in competing business |
| during the term of the franchise | anywhere. | |
| r. Non-competition covenants after the franchise is terminated or expires | Section 17.1 | No involvement in a competing business for 2 years within 20 miles of your Papa Ray’s Pizza Restaurant or of any other Papa Ray’s Pizza Restaurant (same restrictions apply after assignment). |
| s. Modification of the Agreement | Sections 6.2 and 19.6 | Operations Manual and standards and specifications are subject to change. No modifications to the Franchise Agreement except if in writing and signed by both parties. |
| t. Integration/merger clause | Section 19.6 | Only terms of the Franchise Agreement (including exhibits, attachments, Operations Manual and other written materials) and representations made in this Disclosure Document are binding. |
| u. Dispute resolution by arbitration | Sections 18.1 and | Disputes must be mediated before filing an |
| or mediation | 18.2 | arbitration action. |
| v. Choice of forum | Section 18.4 | Litigation must be in Illinois; subject to state law. |
| w. Choice of law | Section 18.4 | Law of the state of Illinois applies, except franchise laws only apply if you meet jurisdictional requirements, subject to state law. |
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, the franchise laws that apply to the Aw franchise are subject to state law and only apply if the franchisee meets the jurisdictional requirements. The franchise agreement specifies that the law of the state of Illinois governs the agreement. However, this is with the exception that franchise laws will apply if the franchisee meets the necessary jurisdictional requirements, and this application is also subject to state law.
This means that while the agreement is generally interpreted under Illinois law, the state where the Aw franchise is located, franchise-specific laws of the state where the franchisee operates may also apply. This is a common provision in franchise agreements, as it ensures compliance with local regulations and protections for franchisees.
For a prospective Aw franchisee, this implies that they should be aware of the franchise laws in their specific state and how those laws might interact with the terms of the franchise agreement. It would be prudent to consult with an attorney to understand the full scope of their rights and obligations under both the franchise agreement and applicable state laws. This is especially important because the choice of forum for litigation is Illinois, potentially adding complexity if a dispute arises that involves state-specific franchise law.