What discretion does Aw have over the creative aspects of the Marketing Fund's advertising?
Aw Franchise · 2025 FDDAnswer from 2025 FDD Document
We will be entitled to direct all advertising, marketing and promotional programs financed by the Marketing Fund, with sole discretion over the creative concepts, materials, and endorsements used in them, and the geographic, market, and media placement and allocation of the programs. You agree that the Marketing Fund may be used to pay the costs of preparing and producing video, audio and written advertising materials; administering national, regional or local advertising programs including, without limitation, direct mail and other media advertising, and employing advertising agencies to assist in those activities; establishing and maintaining the Company Website; supporting public relations, market research and marketing activities; and providing advertising, marketing and promotional materials to Papa Ray's Pizza Restaurants. The Marketing Fund will furnish you with approved advertising, marketing and promotional materials at its direct cost of producing those materials.
Source: Item 22 — CONTRACTS (FDD pages 39–40)
What This Means (2025 FDD)
According to Aw's 2025 Franchise Disclosure Document, Aw has sole discretion over the creative aspects of advertising financed by the Marketing Fund. Specifically, Aw is entitled to direct all advertising, marketing, and promotional programs, including having sole discretion over the creative concepts, materials, and endorsements used. Aw also controls the geographic, market, and media placement and allocation of these programs.
This means that as an Aw franchisee, you will have limited input into the advertising campaigns funded by the mandatory Marketing Fund contributions. While the aim is to maximize brand recognition and patronage for all Papa Ray's Pizza Restaurants, Aw does not guarantee that the marketing efforts will directly benefit each franchise location in proportion to its contribution.
The Marketing Fund is used to cover various advertising-related costs, such as preparing video, audio, and written materials, administering advertising programs, maintaining the company website, supporting public relations, conducting market research, and providing promotional materials to franchisees. Aw will furnish franchisees with approved advertising materials at the direct cost of producing them. Franchisees are required to contribute 2% of their gross revenue to this fund, highlighting the importance of understanding Aw's marketing strategies and their potential impact on your specific location.