What form of payment is required for the Aw royalty fee?
Aw Franchise · 2025 FDDAnswer from 2025 FDD Document
Gross Revenue will not include any receipts from sales, use, or service taxes collected from customers and paid to the appropriate taxing authority, promotional customer discounts and coupons, authorized employee discounts and complimentary products for promotional or charitable purposes.
- 10.5 Electronic Funds Transfer. You must make the weekly payments for the royalty fee, Marketing Fund contributions and any and all other fees that may become due and payable to us hereunder by either electronic transfer or electronic debiting of your business account, or in any other manner that we may hereinafter designate. You must execute such authorization forms as are necessary for electronic transfer or debiting as soon as you have established a bank account for your Papa Ray's Pizza Restaurant and shall execute any other documents as may be required from time to time by us to permit us to electronically transfer funds or debit your account for the purpose
of making the required payments. You may not make any change in your banking relationships, including any change in the account number of your business account, or any change in banks, without our prior written approval and your execution of new authorization forms.
On Tuesday of each week, you must submit to us in the form and manner we specify a statement of Gross Revenue for the previous Monday through Sunday. Payments of the royalty fee and Marketing Fund contributions will be transferred by Noon on Wednesday of each week for the previous Monday through Sunday. The amount of the royalty and Marketing Fund contribution transferred will be based on the Gross Revenue reported by you. You agree to make the funds available for withdrawal by electronic transfer or debiting before each Wednesday at Noon. If you fail to submit a report of the Gross Revenue of your Papa Ray's Pizza Restaurant, we may transfer or debit from your account an amount which is one hundred twenty percent (120%) of the last amount we transferred for payment of the royalty and Marketing Fund contribution.
Source: Item 22 — CONTRACTS (FDD pages 39–40)
What This Means (2025 FDD)
According to Aw's 2025 Franchise Disclosure Document, franchisees must make weekly royalty fee payments via electronic transfer or electronic debiting of their business account, or in any other manner that Aw may designate. Franchisees must also execute authorization forms for electronic transfer or debiting as soon as they establish a bank account for their Aw restaurant. They must also execute any other documents that Aw may require to permit them to electronically transfer funds or debit their account for making the required payments. Franchisees may not change their banking relationships, including any change in the account number of their business account, or any change in banks, without Aw's prior written approval and their execution of new authorization forms.
On Tuesday of each week, franchisees must submit a statement of Gross Revenue for the previous Monday through Sunday. Payments of the royalty fee and Marketing Fund contributions will be transferred by Noon on Wednesday of each week for the previous Monday through Sunday. The amount of the royalty and Marketing Fund contribution transferred will be based on the Gross Revenue reported by the franchisee. Franchisees must make the funds available for withdrawal by electronic transfer or debiting before each Wednesday at Noon.
If a franchisee fails to submit a report of the Gross Revenue of their Aw restaurant, Aw may transfer or debit from their account an amount which is one hundred twenty percent (120%) of the last amount they transferred for payment of the royalty and Marketing Fund contribution. If the amount of the royalty and Marketing Fund contribution Aw transferred is less than the amount that the franchisee actually owes, Aw will transfer from their account the balance of the royalty and Marketing Fund contribution due or they will credit the excess against the next transfer for royalty and Marketing Fund contribution due, as applicable.