On what day of the week is the royalty fee due for an Aw franchise?
Aw Franchise · 2025 FDDAnswer from 2025 FDD Document
ll have fully earned the Initial Franchise Fee and that it becomes non-refundable upon signing this Agreement.
- 10.2 Royalty Fee. You agree to pay us a weekly royalty fee. You agree to pay five percent (5%) of the Gross Revenue (as defined below) of the Papa Ray's Pizza Restaurant. The royalty fee will be payable on Wednesday of each week for the period covering the previous Monday through Sunday via electronic transfer as described in Paragraph 10.7 below. The royalty fee is not refundable, in whole or in part, under any circumstances.
- 10.3 National Marketing Fund Contribution. Recognizing the value of advertising and marketing to the goodwill and public image of Papa Ray's Pizza Restaurants, we intend to establish, maintain and administer an advertising, marketing and promotional fund (the "Marketing Fund") for such advertising, marketing and promotions as we may deem necessary or appropriate in our sole discretion. You agree to contribute to the Marketing Fund two percent (2%) of the Gross Revenue (as defined below) of the Papa Ray's Pizza Restaurant. We have the right to discontinue or reestablish the Marketing Fund upon sixty (60) days advance notice to you.
Source: Item 22 — CONTRACTS (FDD pages 39–40)
What This Means (2025 FDD)
According to Aw's 2025 Franchise Disclosure Document, the royalty fee is due on Wednesdays. Specifically, the royalty fee, which is 5% of the Gross Revenue of the Papa Ray's Pizza Restaurant, is payable every Wednesday for the period covering the previous Monday through Sunday. This payment is to be made via electronic transfer.
In addition to the royalty fee, Aw franchisees are also required to contribute to the National Marketing Fund, which is 2% of the Gross Revenue. This contribution is also due weekly, along with the royalty fee, on Wednesday for the gross revenue of the preceding Monday through Sunday, and is also payable via electronic transfer.
Aw requires franchisees to submit a statement of Gross Revenue for the previous Monday through Sunday every Tuesday. The royalty fee and Marketing Fund contributions will be transferred by Noon on Wednesday, based on the reported Gross Revenue. Franchisees must ensure funds are available for withdrawal by electronic transfer or debiting before each Wednesday at Noon. If a franchisee fails to submit the Gross Revenue report, Aw may transfer or debit an amount equal to 120% of the last transferred amount for royalty and Marketing Fund contribution.