Can Aw discontinue the National Marketing Fund?
Aw Franchise · 2025 FDDAnswer from 2025 FDD Document
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.
In the event we discontinue the Marketing Fund, we will distribute all unspent amounts existing in the Marketing Fund on the date of discontinuance to franchisees in proportion to their respective contributions for the most recent six (6) months.
Source: Item 22 — CONTRACTS (FDD pages 39–40)
What This Means (2025 FDD)
According to Aw's 2025 Franchise Disclosure Document, Aw has the right to discontinue the Marketing Fund. Aw must provide franchisees with sixty (60) days advance notice before discontinuing or reestablishing the Marketing Fund.
In the event that Aw discontinues the Marketing Fund, all unspent amounts existing in the Marketing Fund on the date of discontinuance will be distributed to franchisees. The distribution will be in proportion to each franchisee's contributions to the fund over the most recent six (6) months.
The Marketing Fund is intended to maximize recognition of Aw's marks and patronage of Aw restaurants. Aw has sole discretion over the advertising, marketing, and promotional programs financed by the Marketing Fund.
Franchisees are also required to spend a minimum of $3,800.00 per month on local advertising, marketing, and promotion after the first three months of operation. This local advertising is subject to Aw's approval and direction.