What is the financial impact of purchasing from designated or approved suppliers on the initial investment for an Aw Papa Ray's Pizza Restaurant?

According to Aw's 2025 Franchise Disclosure Document, purchasing from designated or approved suppliers will impact the initial investment for a Papa Ray's Pizza Restaurant. Specifically, these purchases will account for approximately 60% to 65% of the franchisee's initial purchases and leases when opening the restaurant. This means a significant portion of the startup costs will be directed towards suppliers that Aw has designated or approved.

Aw maintains standards and specifications for products, materials, equipment, and supplies used in the operation of Papa Ray's Pizza Restaurants. Franchisees are obligated to adhere to these standards, which may include minimum requirements for product offerings, delivery, performance, design, and appearance. This ensures consistency and quality across all franchise locations, contributing to the brand's reputation and goodwill.

Franchisees must purchase specific items, such as the point-of-sale system, ingredients, food products, paper goods, packaging, uniforms, signs, direct mail marketing, and menu printing, from Aw-approved suppliers. While Aw does not act as a supplier for most of these items, the requirement to use approved vendors impacts the franchisee's initial and ongoing costs. If a franchisee wishes to use an unapproved supplier, they must submit a written request for approval, which may involve a non-refundable fee to cover Aw's costs for the determination. Aw also reserves the right to revoke approval of any approved supplier.