When must an Aw franchisee execute authorization forms for electronic funds transfer?
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.
Source: Item 22 — CONTRACTS (FDD pages 39–40)
What This Means (2025 FDD)
According to Aw's 2025 Franchise Disclosure Document, a franchisee must execute authorization forms for electronic transfer or debiting as soon as they have established a bank account for their Papa Ray's Pizza Restaurant. These forms are necessary to allow Aw to electronically transfer funds or debit the franchisee's account for required payments.
This requirement ensures that Aw can collect royalty fees, marketing fund contributions, and any other fees that may become due. By mandating electronic funds transfer, Aw aims to streamline the payment process and ensure timely receipt of payments from franchisees. This is a fairly standard practice in franchising, as it provides efficiency and reduces administrative burdens for both the franchisor and franchisee.
Furthermore, the franchisee must execute new authorization forms if they change their banking relationships, including changes to the account number or the bank itself. This is contingent upon receiving Aw's prior written approval for any such changes. This provision protects Aw by ensuring that they always have the correct banking information to facilitate electronic payments and maintains control over the payment process.
In summary, as a prospective Aw franchisee, you should be prepared to set up a dedicated bank account for your Papa Ray's Pizza Restaurant and promptly complete the necessary authorization forms to enable electronic payments to Aw. Additionally, any changes to your banking arrangements must be pre-approved by Aw and accompanied by new authorization forms.