What is the deadline for an Aw franchisee to pay any marketing contributions due after an audit?
Aw Franchise · 2025 FDDAnswer from 2025 FDD Document
If any inspection or audit discloses an understatement of the gross revenue of the Papa Ray's Pizza Restaurant, you agree to pay us, within ten (10) days after receipt of the inspection or audit report, the marketing contributions due, plus interest on the amount of the understatement (at the rate and on the terms provided in Paragraph 10.6) from the date originally due until the date of payment.
Further, if the inspection or audit is made necessary by your failure to furnish the reports, supporting records, other information or financial statements required by this Agreement, or to furnish those reports, records, information or financial statements on a timely basis, or discloses an understatement of the Gross Revenue of the Papa Ray's Pizza Restaurant of greater than two percent (2%) for any period, you agree to reimburse us for the cost of such inspection or audit, including, without limitation, the charges of attorneys and any independent accountants, and the travel expenses, room and board and applicable per diem charges for our employees.
The above remedies are in addition to all our other remedies and rights under this Agreement or under applicable law.
Source: Item 22 — CONTRACTS (FDD pages 39–40)
What This Means (2025 FDD)
According to Aw's 2025 Franchise Disclosure Document, if an audit reveals an understatement of gross revenue at a Papa Ray's Pizza Restaurant, the franchisee is required to pay the due marketing contributions within ten days of receiving the audit report. Additionally, interest will be applied to the understated amount, calculated from the original due date until the payment date, based on the terms outlined in Paragraph 10.6 of the agreement.
Furthermore, if the audit was necessitated by the franchisee's failure to provide required reports, records, information, or financial statements in a timely manner, or if the audit uncovers a gross revenue understatement exceeding two percent for any period, the franchisee is responsible for reimbursing Aw for the audit costs. These costs may include charges from attorneys and independent accountants, as well as travel expenses, room and board, and per diem charges for Aw's employees.
These financial obligations are in addition to any other remedies or rights Aw may have under the franchise agreement or applicable law. This provision ensures that Aw franchisees maintain accurate financial reporting and promptly address any discrepancies identified through audits, with potential financial consequences for non-compliance.