Under what conditions does Aw Franchisor have the right of first refusal to acquire my business?

According to Aw's 2025 Franchise Disclosure Document, Aw has the right of first refusal if a franchisee decides to sell their business or an ownership interest in it. Specifically, Aw can match any offer that a franchisee receives. This provision is detailed in Section 14.6 of the franchise agreement.

This right of first refusal is a common practice in franchising. It allows Aw to maintain control over who becomes a franchisee and ensures that any new owner meets their standards. For a franchisee, this means that even if they find a buyer, Aw has the ultimate say in whether the sale goes through. Aw can simply match the offer and acquire the business themselves.

Additionally, Aw also has an option to purchase certain assets of the Papa Ray’s Pizza Restaurant within 30 days of termination or expiration of the franchise agreement. In this case, the purchase price will be the lesser of the cost or fair market value of the assets. This is outlined in Section 16.7 of the franchise agreement.

Prospective franchisees should carefully consider these provisions, as they impact their ability to sell the business to a third party and what happens to their assets upon termination or expiration of the franchise agreement. It is advisable to seek legal counsel to fully understand the implications of these clauses.