factual

Does Aw assume any liability or obligation to franchisees regarding the administration of a local advertising cooperative?

Aw Franchise · 2025 FDD

Answer from 2025 FDD Document

We assume no direct or indirect liability or obligation to you or to any advertising cooperative with respect to the maintenance, direction or administration of the cooperative, including without limitation, any failure by franchisees to make required contributions to the cooperative.

Source: Item 22 — CONTRACTS (FDD pages 39–40)

What This Means (2025 FDD)

According to Aw's 2025 Franchise Disclosure Document, Aw assumes no direct or indirect liability or obligation to franchisees or any advertising cooperative regarding the maintenance, direction, or administration of the cooperative. This includes any failure by franchisees to make required contributions to the cooperative.

This means that if a local advertising cooperative is formed, either by Aw or by Papa Ray's Pizza franchisees with Aw's approval, Aw is not responsible for how the cooperative is run or managed. Franchisees agree to participate in such cooperative and contribute as agreed upon by the majority of the members. Each Papa Ray's Pizza Restaurant in the cooperative, whether franchised, company-owned, or affiliate-owned, has one vote.

For a prospective franchisee, this indicates that while Aw may approve the formation of a local advertising cooperative, the responsibility for its success and proper management rests with the franchisees themselves. Aw is not liable if the cooperative is poorly managed or if franchisees fail to contribute as required. Contributions made to the cooperative will be credited to the franchisee's local advertising expenditure requirements.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.