What conditions trigger the payment of the management fee to Aw?
Aw Franchise · 2025 FDDAnswer from 2025 FDD Document
| TYPE OF FEE1,3 | AMOUNT | DUE DATE | REMARKS |
|---|---|---|---|
| Management Fee | Currently $250 per day, plus expenses; subject to increase | As agreed | Payable to us during period that our appointed manager manages Papa Ray’s Pizza Restaurant, at our option, after 14 days from your receipt of a default notice or 30 days following your death or disability. |
Source: Item 6 — OTHER FEES (FDD pages 13–16)
What This Means (2025 FDD)
According to Aw's 2025 Franchise Disclosure Document, a management fee is payable under specific circumstances. Aw may appoint a manager to oversee a Papa Ray’s Pizza Restaurant, and if this occurs, Aw charges a management fee.
The management fee is currently $250 per day, plus any incurred expenses. This fee is subject to increase over time. The management fee becomes payable to Aw if one of two conditions is met: either 14 days have passed since the franchisee received a default notice, or 30 days have passed following the death or disability of the franchisee.
This means that if a franchisee fails to meet certain obligations outlined in the franchise agreement, Aw can step in to manage the restaurant and charge the daily management fee. Similarly, in the unfortunate event of the franchisee's death or disability, Aw can appoint a manager and begin charging the fee after a 30-day period. The fee covers the cost of the manager's services and any associated expenses, providing Aw with compensation for overseeing the restaurant during these transitional periods.