Under what conditions will Aw Papa Ray's Pizza not establish another restaurant in a franchisee's Protected Area?
Aw Franchise · 2025 FDDAnswer from 2025 FDD Document
As long as you are not in default under the Franchise Agreement, we will not establish another franchised, company-owned or affiliate-owned Papa Ray's Pizza Restaurant in your Protected Area, except for a Papa Ray's Pizza Restaurant in a limited use facility. A limited use facility includes those located within airports, railroad stations or other transportation facilities; stadiums, racetracks or other sport facilities; enclosed shopping centers; casinos; theaters, auditoriums, amusement parks or other entertainment facilities; military bases; and college campuses; and similar types of captive locations. Based on our right to establish restaurants in limited use facilities, you will not receive an exclusive territory. You may face competition from other franchisees, from outlets that we own, or from other channels of distribution or competition brands that we control.
We reserve the right both within and outside the Protected Area, to: (i) offer and sell similar products using our Marks or other marks through an alternate distribution system, including the Internet or through different types of business locations, such as grocery chains or other retail stores; (ii) establish businesses offering similar services and products using different marks; (iii) acquire or be acquired by a company establishing businesses identical or similar to Papa Ray's Pizza Restaurants; and (iv) engage in any other business activities not expressly prohibited by the Franchise Agreement. We are not required to pay you if we exercise any of these rights within your Protected Area.
Source: Item 12 — TERRITORY (FDD pages 29–30)
What This Means (2025 FDD)
According to Aw's 2025 Franchise Disclosure Document, Aw will generally not establish another franchised, company-owned, or affiliate-owned Papa Ray's Pizza Restaurant within a franchisee's Protected Area as long as the franchisee is not in default under the Franchise Agreement. However, this restriction does not apply to Papa Ray's Pizza Restaurants in limited use facilities. These facilities include locations such as airports, railroad stations, transportation facilities, stadiums, racetracks, sports facilities, enclosed shopping centers, casinos, theaters, auditoriums, amusement parks, entertainment facilities, military bases, and college campuses.
Aw also reserves the right to offer and sell similar products using their Marks through alternate distribution systems, including the Internet or different business locations like grocery chains or retail stores, both within and outside the Protected Area. They can also establish businesses offering similar services and products using different marks, acquire or be acquired by a company establishing similar businesses, and engage in other business activities not expressly prohibited by the Franchise Agreement. Aw is not required to compensate the franchisee if they exercise these rights within the Protected Area.
The FDD also states that if a franchisee fails to meet a minimum annual gross revenue of $300,000 after a 12-month grace period, Aw may reduce or eliminate the franchisee's Protected Area. If the Protected Area is reduced or eliminated, Aw may then establish another Papa Ray's Pizza Restaurant in the former Protected Area.