What authorization forms must an Aw franchisee execute for electronic funds transfer?
Aw Franchise · 2025 FDDAnswer from 2025 FDD Document
Gross Revenue will not include any receipts from sales, use, or service taxes collected from customers and paid to the appropriate taxing authority, promotional customer discounts and coupons, authorized employee discounts and complimentary products for promotional or charitable purposes.
- 10.5 Electronic Funds Transfer. You must make the weekly payments for the royalty fee, Marketing Fund contributions and any and all other fees that may become due and payable to us hereunder by either electronic transfer or electronic debiting of your business account, or in any other manner that we may hereinafter designate. You must execute such authorization forms as are necessary for electronic transfer or debiting as soon as you have established a bank account for your Papa Ray's Pizza Restaurant and shall execute any other documents as may be required from time to time by us to permit us to electronically transfer funds or debit your account for the purpose
of making the required payments.
Source: Item 22 — CONTRACTS (FDD pages 39–40)
What This Means (2025 FDD)
According to Aw's 2025 Franchise Disclosure Document, franchisees must execute authorization forms necessary for electronic transfers or debits as soon as they establish a bank account for their Papa Ray's Pizza Restaurant. These forms allow Aw to electronically transfer funds or debit the franchisee's account to make required payments. Additionally, franchisees must execute any other documents that Aw may require from time to time to facilitate these electronic transactions.
This requirement ensures that Aw can efficiently collect royalty fees, marketing fund contributions, and any other fees due from the franchisee. By mandating electronic transfers, Aw streamlines the payment process and reduces the administrative burden on both the franchisee and the company. The FDD emphasizes the importance of maintaining consistent banking relationships, as franchisees cannot change their bank accounts or account numbers without prior written approval from Aw and the execution of new authorization forms.
The weekly payments for royalty fees and marketing fund contributions are due each Wednesday for the gross revenue of the preceding Monday through Sunday. These payments are made via electronic transfer. Franchisees must also submit a statement of gross revenue each Tuesday, which Aw uses to calculate the amount to be transferred. Failure to submit this report may result in Aw debiting an amount equal to 120% of the last transferred amount.
This electronic funds transfer system is a standard practice in franchising, allowing franchisors like Aw to maintain consistent cash flow and manage financial obligations efficiently. Franchisees should be aware of these requirements and ensure they comply with all necessary procedures to avoid penalties or disruptions in their franchise operations.