Under the Aw Franchise Agreement, what section addresses the franchisor's option to purchase the franchisee’s business?

According to Aw's 2025 Franchise Disclosure Document, Section 16.7 of the Franchise Agreement outlines Aw's option to purchase the franchisee's business. Specifically, Aw has the option to purchase certain assets of the Papa Ray’s Pizza Restaurant.

This option is available to Aw within 30 days of the termination or expiration of the franchise agreement. The purchase price for these assets will be the lesser of their cost or fair market value. This means that if a franchisee's assets have depreciated significantly, Aw can purchase them at a lower price than their original cost.

For a prospective Aw franchisee, this clause is important to consider as it dictates the terms under which Aw can acquire the business's assets upon termination or expiration of the franchise agreement. It is crucial to understand how the 'fair market value' will be determined and what specific assets are subject to this purchase option. Franchisees should be aware that they may be required to sell assets to Aw at a potentially reduced value at the end of their franchise term.