Besides local advertising expenditures and marketing fund contributions, what other advertising-related expenditures might Aw franchisees face?
Aw Franchise · 2025 FDDAnswer from 2025 FDD Document
- 12.4 Cooperative Advertising.
In addition to your individual local advertising, marketing and promotional expenditures and contributions to the Marketing Fund, if a local or regional advertising cooperative is formed either by us or by Papa Ray's Pizza franchisees and approved by us in your area or region, you agree to participate in such cooperative and contribute to the cooperative in the amount and manner agreed upon by a majority of the members of the cooperative.
Each of the Papa Ray's Pizza Restaurants in the cooperative, whether franchised or company-owned or affiliate-owned, shall have one vote in the cooperative.
Contributions made by you to the cooperative will be credited to your local advertising expenditure requirements in Section 12.2 above.
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, franchisees may be required to participate in a local or regional advertising cooperative if one is formed in their area. The amount and manner of contribution to the cooperative will be determined by a majority of the members. Each Aw restaurant in the cooperative, whether franchised, company-owned, or affiliate-owned, has one vote.
Contributions to the cooperative are credited toward the franchisee's local advertising expenditure requirements, which are a minimum of $3,800 per month. Aw assumes no liability regarding the cooperative's maintenance, direction, or administration, including any failures by franchisees to contribute.
All local advertising materials not prepared or previously approved by Aw must be submitted for approval, and unapproved materials cannot be used. Aw also requires that all advertising be factual, in good taste, and conform to ethical advertising standards. Franchisees must avoid advertising that could harm the Aw brand or other franchisees.