Where can I find the details of my required contributions to the Aw Marketing Fund?
Aw Franchise · 2025 FDDAnswer from 2025 FDD Document
e computer system that we designate for franchise network use.
We may require you to establish and maintain an active e-mail account and have high speed access to the Internet for communicating with and receiving information from us, and for on-line ordering for customers.
12. ADVERTISING
12.1 Marketing Fund. We administer a system-wide marketing fund ("Marketing Fund"). Your required contributions to the Marketing Fund are set forth in Paragraph 10.3 of this Agreement.
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.
The Marketing Fund will be a separate and distinct account and will be accounted for separately from the other funds of the Company and will not be used to defray any of our general operating expenses, except for any reasonable salaries, administrative costs and overhead we may incur in activities reasonably related to the administration of the Marketing Fund and its advertising, marketing and promotional programs (including, without limitation, conducting market research, preparing advertising, marketing and promotional materials, and collecting and accounting for contributions to the Marketing Fund). We may spend in any fiscal year an amount greater or less than the total contribution of Papa Ray's Pizza Restaurants to the Marketing Fund in that year. We may cause the Marketing Fund to borrow from us or other lenders to cover deficits of the Marketing Fund or cause the Marketing Fund to invest any surplus for future use by the Marketing Fund. All interest earned on monies contributed to the Marketing Fund will be used to pay advertising, marketing and promotional costs of the Marketing Fund before other assets of the Marketing Fund are expended. We will prepare an annual statement of monies collected and costs incurred by the Marketing Fund and will furnish it to you on written request.
You understand and acknowledge that the Marketing Fund is intended to maximize recognition of the Marks and patronage of Papa Ray's Pizza Restaurants. Although we will endeavor to use the Marketing Fund to develop advertising, marketing and promotional materials, and to place advertising in a manner that will benefit all Papa Ray's Pizza Restaurants, we undertake no obligation to ensure that expenditures by the Marketing Fund in or affecting any geographic area are proportionate or equivalent to contributions to the Marketing Fund by Papa Ray's Pizza Restaurants operating in that geographic area or that any Papa Ray's Pizza Restaurant will benefit directly or in proportion to its contribution to the Marketing Fund from the
development of advertising, marketing and promotional materials or the placement of advertising.
Source: Item 22 — CONTRACTS (FDD pages 39–40)
What This Means (2025 FDD)
According to Aw's 2025 Franchise Disclosure Document, details regarding the required contributions to the Marketing Fund can be found in Paragraph 10.3 of the Franchise Agreement, as referenced in Paragraph 12.1. Franchisees are obligated to contribute 2% of their Gross Revenue to the Marketing Fund. Gross Revenue is defined as the total receipts from sales of food, beverages, merchandise, or services from the premises, excluding sales, use, or service taxes collected from customers, promotional customer discounts and coupons, authorized employee discounts, and complimentary products for promotional or charitable purposes. This contribution is intended for advertising, marketing, and promotional activities deemed necessary by Aw.
The Marketing Fund contributions are due weekly, along with the royalty fee, on Wednesday for the gross revenue of the preceding Monday through Sunday. These payments must be made via electronic transfer. Franchisees are required to submit a statement of Gross Revenue each Tuesday, and the payment will be transferred by Noon on Wednesday. If a franchisee fails to submit the Gross Revenue report, Aw may transfer an amount equal to 120% of the last payment.
Additionally, Paragraph 12.1 provides further details about the Marketing Fund, stating that Aw has sole discretion over the advertising, marketing, and promotional programs financed by the fund. The fund may cover costs related to producing advertising materials, administering advertising programs, maintaining the company website, supporting public relations, and providing promotional materials to franchisees. Aw will provide franchisees with approved advertising materials at its direct cost of production. An annual statement of monies collected and costs incurred by the Marketing Fund will be provided to franchisees upon written request.