factual

Under what conditions can Aw require additional training or terminate the franchise agreement during the initial training program?

Aw Franchise · 2025 FDD

Answer from 2025 FDD Document

5.1 Initial Training. Prior to the opening of your Papa Ray's Pizza Restaurant, we will furnish, and you must attend and complete to our satisfaction, an initial training program of approximately four (4) weeks covering the operation of a Papa Ray's Pizza Restaurant. We, in our discretion, will determine when the initial training will take place and how long it will last. The total days of initial training provided to you may vary dependent upon your prior experience and other factors. Two (2) Owners and managers may attend the initial training program at no additional fee. Beyond the first two (2) people, additional Owners or managers may attend initial training program as space is available and for the current tuition fee. The initial training program will be furnished at times we designate at our offices, existing Papa Ray's Pizza Restaurants and/or other locations we designate.

If, during the initial training program, we determine, in our sole discretion, that you (or your approved Owner) are not qualified to manage a Papa Ray's Pizza Restaurant, we have the right to require you to attend and successfully complete additional training and/or to terminate this Agreement, effective upon delivery of written notice thereof to you. If during any training program, we determine, in our sole discretion, that any proposed Operating Manager is not qualified to manage your Papa Ray's Pizza Restaurant, we will notify you of that determination and you must then select and enroll a substitute manager in such training program. If you desire to have other managers trained by us, we will make this opportunity available to you provided training space is available in a regularly scheduled class. We will charge you the then-current fee for this additional training.

You will be solely responsible for all expenses, including, without limitation, travel, room, board, transportation expenses, and wages, incurred by you (or any of your Owners) and any proposed manager or employees in connection with attending any initial training program.

Source: Item 22 — CONTRACTS (FDD pages 39–40)

What This Means (2025 FDD)

According to Aw's 2025 Franchise Disclosure Document, Aw retains significant discretion over the initial training program and a franchisee's qualifications. Aw will furnish, and the franchisee must attend and complete to Aw's satisfaction, an initial training program of approximately four weeks covering the operation of a Papa Ray's Pizza Restaurant. Aw determines when the initial training will take place and how long it will last. The total days of initial training provided may vary based on prior experience and other factors.

During the initial training program, if Aw determines, in its sole discretion, that the franchisee (or their approved Owner) is not qualified to manage a Papa Ray's Pizza Restaurant, Aw has the right to require the franchisee to attend and successfully complete additional training. Alternatively, Aw can terminate the Franchise Agreement, which becomes effective upon delivery of written notice to the franchisee.

This clause gives Aw broad authority to assess a franchisee's capabilities during training. If Aw deems the franchisee unfit, they can demand further training or terminate the agreement, potentially leading to a loss of investment if termination occurs. Prospective franchisees should carefully consider this clause and seek clarification from Aw regarding the specific criteria used to evaluate their performance during training.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.