Must an Aw franchisee cooperate with Aw's representatives during an audit?
Aw Franchise · 2025 FDDAnswer from 2025 FDD Document
You agree to fully cooperate with our representatives and independent accountants we may hire to conduct any inspection or audit.
If any inspection or audit discloses an understatement of the gross revenue of the Papa Ray's Pizza Restaurant, you agree to pay us, within ten (10) days after receipt of the inspection or audit report, the marketing contributions due, plus interest on the amount of the understatement (at the rate and on the terms provided in Paragraph 10.6) from the date originally due until the date of payment.
Further, if the inspection or audit is made necessary by your failure to furnish the reports, supporting records, other information or financial statements required by this Agreement, or to furnish those reports, records, information or financial statements on a timely basis, or discloses an understatement of the Gross Revenue of the Papa Ray's Pizza Restaurant of greater than two percent (2%) for any period, you agree to reimburse us for the cost of such inspection or audit, including, without limitation, the charges of attorneys and any independent accountants, and the travel expenses, room and board and applicable per diem charges for our employees.
The above remedies are in addition to all our other remedies and rights under this Agreement or under applicable law.
Source: Item 22 — CONTRACTS (FDD pages 39–40)
What This Means (2025 FDD)
According to Aw's 2025 Franchise Disclosure Document, franchisees must cooperate with Aw's representatives or independent accountants during an inspection or audit. Specifically, the franchisee agrees to fully cooperate with the representatives and independent accountants that Aw hires to conduct any inspection or audit. This cooperation is a requirement of the franchise agreement.
If an audit reveals that the franchisee has understated their gross revenue, the franchisee must pay Aw the marketing contributions due, along with interest on the understated amount. This payment is due within ten days of receiving the audit report, with interest calculated from the original due date until the date of payment.
Furthermore, Aw may require the franchisee to cover the costs of the audit if the audit was necessary due to the franchisee's failure to provide required reports, records, information, or financial statements on time. The franchisee will also be responsible for audit costs if the audit reveals an understatement of gross revenue exceeding two percent for any period. These costs can include charges for attorneys and independent accountants, as well as travel expenses, room and board, and per diem charges for Aw's employees. These remedies are in addition to any other rights Aw has under the agreement or applicable law.