What is the basis for the rebates that Aw currently receives from two suppliers?

According to Aw's 2025 Franchise Disclosure Document, Aw currently receives rebates from two suppliers. These rebates are based on a percentage of certain purchases made by Aw franchisees. This arrangement is negotiated by Aw with the suppliers for the benefit of its franchisees.

For a prospective Aw franchisee, this means that Aw actively seeks to reduce costs for its franchisees by negotiating deals with suppliers. The rebates Aw receives are tied to the purchasing volume of the franchisees, suggesting that as the franchise system grows and franchisees purchase more from these suppliers, the rebates could potentially increase. However, the FDD does not specify how these rebates are used or distributed, so it is important for potential franchisees to clarify this point.

It is common in the franchise industry for franchisors to negotiate with suppliers to secure better pricing or rebates for the benefit of the franchise system. These arrangements can help franchisees reduce their operating costs and improve their profitability. However, it is crucial for franchisees to understand how these rebates are managed and whether they directly benefit from them. A potential franchisee should inquire with Aw about the specific percentage of purchases that trigger rebates, how the rebates are calculated, and how the resulting funds are utilized to benefit the franchisees.