What accounting system standards must an Aw franchisee follow?
Aw Franchise · 2025 FDDAnswer from 2025 FDD Document
13.1 Accounting and Recordkeeping. You agree to establish and maintain a bookkeeping, accounting, and recordkeeping system conforming to generally accepted accounting principles and to the standards, specifications and requirements we prescribe from time to time.
You agree to maintain at the Premises for a minimum of five (5) years from the date of preparation, full, complete and accurate books, records and accounts, copies of sales tax returns and copies of such portions of your and your Owners' state and federal income tax return as reflect the operation of your Papa Ray's Pizza Restaurant.
Source: Item 22 — CONTRACTS (FDD pages 39–40)
What This Means (2025 FDD)
According to Aw's 2025 Franchise Disclosure Document, franchisees must adhere to specific accounting and record-keeping standards. Aw requires franchisees to establish and maintain a bookkeeping, accounting, and record-keeping system that conforms to generally accepted accounting principles. Additionally, the system must meet any standards, specifications, and requirements that Aw prescribes, which may be updated from time to time.
Aw franchisees are obligated to maintain full, complete, and accurate books, records, and accounts at the franchise premises for a minimum of five years from the date of preparation. These records must include copies of sales tax returns and relevant portions of the franchisee's and their owners' state and federal income tax returns that reflect the operation of the Aw restaurant.
These requirements ensure that Aw franchisees maintain transparent and standardized financial records, allowing Aw to monitor the financial health and performance of individual franchises and the overall franchise system. Franchisees should be prepared to invest in setting up and maintaining an accounting system that meets Aw's standards and to retain all necessary records for the specified period.