Under what condition is an Aw franchisee prohibited from providing delivery service outside their Protected Area?
Aw Franchise · 2025 FDDAnswer from 2025 FDD Document
- 2.5 Delivery, Catering and Marketing Restrictions. You are prohibited from providing delivery service to or catering services at any location outside your Protected Area unless you obtain our prior written consent to do so. If you obtain our consent to deliver or provide catering services outside of the Protected Area, and subject to standards, specifications and procedures for delivery and catering as set forth in the Operations Manual, you may deliver and provide catering services outside of the Protected Area only as long as the area does not fall within the Protected Area assigned to another Papa Ray's Pizza franchisee or affiliate-owned Papa Ray's Pizza Restaurant. If the area is later assigned to a Papa Ray's Pizza franchisee, you must immediately cease all deliveries and catering services to customers located in the other franchisee's Protected Area.
Throughout the term of the franchise, you are strictly prohibited from conducting targeted marketing to promote your Papa Ray's Pizza Restaurant within the Protected Area of another Papa Ray's Pizza franchisee. "Targeted Marketing" shall include all forms of advertising and promotion for customers which can reasonably be restricted to an address, including, but not limited to, direct mailings, door leaflets, telephone solicitation, and localized signs. The purpose of this restriction includes, but is not limited to, preventing confusion in the market place among Papa Ray's Pizza franchisees soliciting the same customers.
Source: Item 22 — CONTRACTS (FDD pages 39–40)
What This Means (2025 FDD)
According to Aw's 2025 Franchise Disclosure Document, a franchisee is generally prohibited from providing delivery or catering services outside of their Protected Area without prior written consent from Aw. If consent is granted, the franchisee can only deliver or cater to areas not within another Papa Ray's Pizza franchisee's or affiliate-owned restaurant's Protected Area.
The FDD states that if an area outside of a franchisee's Protected Area, where they have been providing delivery or catering services with consent, is later assigned to another Papa Ray's Pizza franchisee, the original franchisee must immediately cease all deliveries and catering services to customers in that newly assigned Protected Area. This condition ensures that each franchisee maintains exclusive rights within their designated territory and prevents market confusion.
This restriction is further reinforced by the prohibition of targeted marketing within another franchisee's Protected Area. Targeted marketing includes advertising and promotion methods like direct mailings and localized signs that can be restricted to an address. This comprehensive approach aims to avoid franchisees soliciting the same customers and ensures the integrity of each Protected Area.
In summary, an Aw franchisee is prohibited from providing delivery service outside their Protected Area unless they have written consent from Aw and the area is not within another franchisee's protected territory. If that outside area later becomes part of another franchisee's territory, they must stop delivery service there immediately.