Where must an Aw franchisee maintain their books, records, and accounts?
Aw Franchise · 2025 FDDAnswer from 2025 FDD Document
13.1 Accounting and Recordkeeping. You agree to establish and maintain a bookkeeping, accounting, and recordkeeping system conforming to generally accepted accounting principles and to the standards, specifications and requirements we prescribe from time to time.
You agree to maintain at the Premises for a minimum of five (5) years from the date of preparation, full, complete and accurate books, records and accounts, copies of sales tax returns and copies of such portions of your and your Owners' state and federal income tax return as reflect the operation of your Papa Ray's Pizza Restaurant.
Source: Item 22 — CONTRACTS (FDD pages 39–40)
What This Means (2025 FDD)
According to Aw's 2025 Franchise Disclosure Document, franchisees must maintain their books, records, and accounts at the premises of their Papa Ray's Pizza Restaurant. These records must be kept for a minimum of five years from the date of preparation.
Specifically, Aw requires franchisees to maintain full, complete, and accurate books, records, and accounts, along with copies of sales tax returns and copies of the franchisee's and their owners' state and federal income tax returns that reflect the operation of the Papa Ray's Pizza Restaurant. This ensures that Aw can properly audit the financial performance and tax compliance of its franchisees.
This requirement is fairly standard in franchising, as franchisors need access to franchisees' financial information for various reasons, including calculating royalties, monitoring performance, and ensuring compliance with the franchise agreement. By mandating that these records be kept at the premises, Aw ensures they are readily accessible for inspection and audit purposes.