Must an Aw franchisee execute other documents required to permit electronic funds transfer?
Aw Franchise · 2025 FDDAnswer from 2025 FDD Document
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. If the amount of the royalty and Marketing Fund contribution we transferred is less than the amount that you actually owe to us (once we have determined the true and correct amount of Gross Revenue), we will transfer from your account the balance of the royalty and Marketing Fund contribution due or we will credit the excess against the next transfer for royalty and Marketing Fund contribution due, as applicable.
Source: Item 22 — CONTRACTS (FDD pages 39–40)
What This Means (2025 FDD)
According to Aw's 2025 Franchise Disclosure Document, franchisees must execute new authorization forms for electronic funds transfers if they change their banking relationships. Specifically, franchisees cannot alter their banking relationships, including business account numbers or banks, without Aw's prior written approval and the execution of new authorization forms.
This requirement ensures that Aw can continue to receive royalty and marketing fund payments without interruption. Franchisees are obligated to submit a statement of gross revenue each Tuesday for the preceding Monday through Sunday. Payments for royalty fees and marketing fund contributions are then electronically transferred by Noon on Wednesday, based on the reported gross revenue. Franchisees must ensure funds are available for withdrawal by electronic transfer or debiting before each Wednesday at Noon.
If a franchisee fails to report gross revenue, Aw has the right to transfer or debit an amount equal to 120% of the last transferred amount for royalty and marketing fund contributions. If the transferred amount is less than what is actually owed, Aw will either transfer the balance due or credit the excess against the next transfer. This system underscores the importance of accurate and timely reporting and maintaining a stable banking relationship approved by Aw to facilitate these electronic transactions.