Under the Aw Franchise Agreement, is the franchisee responsible for determining the location of the Papa Ray's Pizza Restaurant?
Aw Franchise · 2025 FDDAnswer from 2025 FDD Document
| The parties hereto agree that the Papa Ray's Pizza Restaurant to be operated by you pursuant to the Franchise Agreement shall be located at the following premises: | |
|---|---|
| (the "Premises"). | |
| Restaurant and any information communicated to you regarding the Premises for your Papa Ray's Pizza Restaurant do not constitute a representation or warranty of any kind, expressed or implied, as to the suitability of the Premises for a Papa Ray's Pizza Restaurant, of the economic terms of the lease, or for any other purpose. Our approval of Premises falls within the then-current acceptable criteria established by us as of the time period encompassing the evaluation. You and we acknowledge that application of criteria that have been effective with respect to other sites and premises may not be predictive of potential for all sites and premises and that, subsequent to our approval of a site and premises, demographic and/or economic factors, including competition from other businesses, included in or excluded from our criteria could change, thereby altering the potential of a site and premises. The uncertainty and instability of such criteria are beyond our control and you must agree that we will not be responsible for the failure of a site and premises approved by us to meet expectations as to potential revenue or operational criteria. You further acknowledge and agree that your acceptance of a franchise for the operation of a Papa Ray's Pizza Restaurant at the Premises is based on your own independent investigation of the suitability of the Premises. | You acknowledge and agree that our approval of the premises for your Papa Ray's Pizza the Premises indicates only that we believe that the |
Source: Item 22 — CONTRACTS (FDD pages 39–40)
What This Means (2025 FDD)
According to Aw's 2025 Franchise Disclosure Document, the location of the Papa Ray's Pizza Restaurant is determined by both the franchisee and Aw. The Franchise Agreement specifies that the restaurant will be located at a mutually agreed-upon premises. However, Aw's approval of the premises does not constitute a warranty regarding its suitability or economic terms.
Aw's approval is based on criteria established at the time of evaluation, but these criteria may not accurately predict the potential of all sites. Demographic and economic factors can change, affecting a location's potential. The FDD makes it clear that Aw is not responsible if an approved location fails to meet expectations regarding revenue or operational criteria.
The franchisee acknowledges that their acceptance of the location is based on their own independent investigation of its suitability. This means that while Aw has approval rights, the franchisee is ultimately responsible for assessing the location's potential and ensuring it aligns with their business goals. This is a common practice in franchising, where the franchisee typically bears the risk associated with site selection.