What discretion does Aw have over the media placement 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 significant control over the Marketing Fund. Aw is entitled to direct all advertising, marketing, and promotional programs financed by the Marketing Fund. This includes complete discretion over the creative concepts, materials, and endorsements used, as well as the geographic, market, and media placement and allocation of these programs.
This means that Aw decides how the money in the Marketing Fund is spent, what kind of advertising is created, and where that advertising is placed, without needing direct input or approval from franchisees. The Marketing Fund can be used to cover various costs, such as preparing advertising materials, administering advertising programs (including direct mail and media advertising), maintaining the company website, supporting public relations, conducting market research, and providing materials to Papa Ray's Pizza Restaurants.
While Aw aims to use the Marketing Fund in a way that benefits all Papa Ray's Pizza Restaurants, there's no guarantee that the expenditures in any specific area will be proportional to the contributions from restaurants in that area. Nor is there a guarantee that any particular Papa Ray's Pizza Restaurant will directly benefit in proportion to its contribution. Franchisees are required to contribute to this fund, so understanding Aw's control over it is crucial. Franchisees are entitled to receive an annual statement of monies collected and costs incurred by the Marketing Fund upon written request.