Under the Aw franchise agreement, is the franchisee considered an employee of the franchisor?
Aw Franchise · 2025 FDDAnswer from 2025 FDD Document
8. RELATIONSHIP OF THE PARTIES; INDEMNIFICATION
- 8.1 Independent Contractor; No Fiduciary Relationship. Both you and we understand and agree that this Agreement does not create a fiduciary relationship between us, that you and we are independent contractors, and that nothing in this Agreement is intended to make either party a general or special agent, joint venturer, partner, or employee of the other for any purpose whatsoever. You agree to conspicuously identify yourself in all your dealings with customers, suppliers, public officials, employees, and others as the owner of the Papa Ray's Pizza Restaurant pursuant to a Franchise Agreement with us, and agree to place any other notices of independent ownership on your forms, business cards, stationery, advertising, and other materials as we may require from time to time.
- 8.2 No Employment Relationship. You shall prominently display, by posting of a sign within public view, on or in the Premises, a statement that clearly indicates that the Papa Ray's Pizza Restaurant is independently owned and operated by you as our franchisee. You expressly
acknowledge that we are not your employer or an employer of any of your employees. In addition, we are not a joint employer with you. You acknowledge that our training, guidance, advice and assistance, your obligations under this Agreement and the standards, specifications, policies and procedures required by us hereunder and in the Operations Manual are imposed not for the purpose of exercising control over you but rather for the limited purpose of protecting the Marks and Confidential Information, goodwill and brand consistency. You are solely responsible for the management of the Papa Ray's Pizza Restaurant as an independent franchise owner/operator.
Source: Item 22 — CONTRACTS (FDD pages 39–40)
What This Means (2025 FDD)
According to Aw's 2025 Franchise Disclosure Document, the franchise agreement explicitly states that the franchisee is an independent contractor and not an employee of Aw. The agreement emphasizes that no fiduciary relationship is created between Aw and the franchisee. This means that the franchisee operates their Papa Ray's Pizza Restaurant as an independent business owner.
The franchisee is required to identify themselves as the owner of the Papa Ray's Pizza Restaurant operating under a franchise agreement with Aw in all dealings with customers, suppliers, employees, and public officials. This reinforces the independent nature of the business. Aw's training, guidance, advice, and assistance are provided to protect the Marks and Confidential Information, goodwill, and brand consistency, and not to exert control over the franchisee's operations.
The franchisee is solely responsible for managing their Papa Ray's Pizza Restaurant, including hiring, firing, compensation, and other employment-related decisions. This further clarifies that Aw is not the employer of the franchisee or the franchisee's employees. The franchisee must also prominently display a statement indicating that the Papa Ray's Pizza Restaurant is independently owned and operated.