factual

Does Aw currently receive rebates from suppliers based on franchisee purchases?

Aw Franchise · 2025 FDD

Answer from 2025 FDD Document

We negotiate arrangements with suppliers for the benefit of franchisees. We currently receive rebates from two suppliers based on a percentage of certain purchases by our franchisees.

Source: Item 8 — RESTRICTIONS ON SOURCES OF PRODUCTS AND SERVICES (FDD pages 19–21)

What This Means (2025 FDD)

According to Aw's 2025 Franchise Disclosure Document, Aw does receive rebates from suppliers based on a percentage of certain purchases made by its franchisees. Specifically, Aw currently receives rebates from two suppliers.

This arrangement means that Aw benefits financially from the purchasing activities of its franchisees. While the FDD states that Aw negotiates arrangements with suppliers for the benefit of franchisees, the rebates Aw receives could potentially influence its choice of approved suppliers. This could be a benefit to franchisees if Aw uses the rebates to lower costs for franchisees.

A prospective franchisee should inquire about the specific suppliers providing these rebates, the percentage of purchases that are rebated, and how these rebates are used to benefit the franchise system. Understanding the details of these arrangements is crucial for assessing the overall cost structure and potential profitability of an Aw franchise.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.