Are company-owned Aw restaurants allowed to participate in local advertising cooperatives?
Aw Franchise · 2025 FDDAnswer from 2025 FDD Document
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, company-owned restaurants have the same rights and responsibilities as franchised locations regarding local advertising cooperatives. If Aw or the franchisees form a local or regional advertising cooperative that Aw approves, franchisees must participate and contribute as agreed upon by the 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. Aw assumes no liability for the cooperative's maintenance, direction, or administration, including franchisees' failure to contribute. This arrangement ensures that all restaurants, regardless of ownership, can participate in and benefit from cooperative advertising efforts, enhancing brand awareness and local marketing impact.
This setup promotes a unified marketing approach within a specific region, allowing both franchised and company-owned Aw locations to leverage collective resources for advertising. However, franchisees should be aware that Aw does not guarantee the success or proper management of these cooperatives, placing some risk on the participating members. Franchisees should engage actively in the cooperative's decision-making to ensure their interests are represented and that the advertising strategies are effective for their specific location.