Under what conditions can an Aw franchisee provide delivery or catering services outside of 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 16 — RESTRICTIONS ON WHAT THE FRANCHISEE MAY SELL (FDD pages 33–34)
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 provide these services outside their protected area if the location is not within another Papa Ray's Pizza franchisee's protected area or an affiliate-owned Papa Ray's Pizza Restaurant. If the area later becomes part of another franchisee's protected area, the franchisee must immediately stop all delivery and catering services to customers in that area.
This restriction is in place to prevent confusion in the marketplace and avoid franchisees soliciting the same customers. Additionally, franchisees are prohibited from conducting targeted marketing within another franchisee's protected area, which includes advertising and promotions that can be restricted to an address, such as direct mailings and telephone solicitations.
This policy ensures that each Aw franchisee has a defined area to focus on, minimizing direct competition between franchisees and maintaining market clarity. However, it also means that a franchisee's ability to expand their delivery or catering services beyond their immediate territory is subject to Aw's approval and the territorial rights of other franchisees.