What is the amount Aw franchisees must pay for reimbursement of taxes?
Aw Franchise · 2025 FDDAnswer from 2025 FDD Document
cture_0.jpeg)
| TYPE OF FEE1,3 | AMOUNT | DUE DATE | REMARKS |
|---|---|---|---|
| omissions, our enforcement of this Agreement, our defense of our actions taken under this Agreement or your breach of the Franchise Agreement. | |||
| Costs and Attorney's Fees | Will vary under circumstances | As incurred | You must reimburse us for costs and attorney's fees we incur in actions against you to enforce the Franchise Agreement. |
| Reimbursement for insurance costs | Costs and premiums incurred by us on your behalf. | Upon demand | Payable if we incur costs to purchase insurance for you if you fail to do so. |
| Reimbursement of Taxes | Actual assessed taxes against us for your operation of your business or on any payments you make to us. | Upon demand | Only payable if taxes of this type are assessed against us. |
| Software license fees | Undetermined since proprietary software has not yet been developed. | As arranged | Payable if we develop proprietary software that you must use for operating your Papa Ray's Pizza Restaurant. |
-
- Unless otherwise noted, all fees are imposed by and payable to us. All fees are nonrefundable.
Source: Item 6 — OTHER FEES (FDD pages 13–16)
What This Means (2025 FDD)
According to Aw's 2025 Franchise Disclosure Document, franchisees are responsible for reimbursing Aw for taxes under specific circumstances. The reimbursement amount is based on the actual taxes assessed against Aw due to the franchisee's business operations or any payments the franchisee makes to Aw. This means the amount will vary depending on the tax liabilities incurred.
The reimbursement of taxes is only payable if these types of taxes are actually assessed against Aw. This protects the franchisee from arbitrary charges, as the obligation arises only when Aw faces a legitimate tax burden directly related to the franchisee's activities.
The payment is due upon demand, meaning Aw will notify the franchisee when such taxes are assessed and require reimbursement. It is important for prospective Aw franchisees to understand that this is a pass-through cost, where they are essentially covering Aw's tax expenses that arise from their operation. Franchisees should maintain accurate records of their payments to Aw and their business operations to ensure accurate tax reimbursement.