Does the definition of Gross Revenue for an Aw franchise include all receipts from the sale of food?

According to Aw's 2025 Franchise Disclosure Document, Gross Revenue is comprehensively defined to include receipts from various sources related to the Papa Ray's Pizza Restaurant. Specifically, it encompasses "the amount of all receipts from the sale of any and all food, beverages, merchandise or other products or services made and rendered in, on or from the Premises, or through any other means, including sales outside of the Premises, that is in any way related to your Papa Ray's Pizza Restaurant, whether for cash, exchange or credit".

This definition means that Aw franchisees must calculate their royalty and marketing fund contributions based on nearly all revenue streams associated with their restaurant. The only exceptions are receipts from sales, use, or service taxes collected from customers and paid to the appropriate taxing authority, promotional customer discounts and coupons, authorized employee discounts, and complimentary products for promotional or charitable purposes.

For a prospective Aw franchisee, this broad definition of Gross Revenue has significant implications. It ensures that Aw receives its royalty and marketing fund contributions from all possible sales channels, including dine-in, takeout, delivery, and catering. Franchisees need to maintain accurate records of all sales to correctly calculate and report Gross Revenue, as underreporting can lead to audits and penalties, including interest on the understated amount and reimbursement of audit costs if the understatement exceeds two percent. This comprehensive approach is fairly standard in the franchise industry, as franchisors aim to capture revenue from all aspects of the business to support the brand and provide ongoing services.