When must an Aw franchisee submit the monthly profit and loss statement?
Aw Franchise · 2025 FDDAnswer from 2025 FDD Document
You agree to furnish us in the form and in the manner we prescribe from time to time: (1) by Tuesday of each week a report of the Gross Sale of the Papa Ray's Pizza Restaurant for the preceding Monday through Sunday; (2) within ten (10) days of the end of each month, a profit and loss statement for the preceding calendar month and a year to date profit and loss statement and balance sheet; (3) within seventy-five (75) days after the end of your fiscal year, a fiscal year-end balance sheet and an annual profit and loss statement for that fiscal year, reflecting all year-end adjustments; (4) within ten (10) days of the end of each calendar quarter, exact copies of all sales tax returns; and (5) on or before April 25 of each year, exact 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 are required to submit a profit and loss statement within ten days of the end of each month. This statement must cover the preceding calendar month. Additionally, Aw requires a year-to-date profit and loss statement and balance sheet to be submitted at the same time.
This reporting requirement ensures that Aw has a consistent and timely view of each franchise's financial performance. By mandating these reports, Aw can monitor the financial health of its franchisees, identify potential issues early on, and offer support or guidance as needed. This also allows Aw to calculate royalties and other fees accurately, as these are often based on a percentage of gross sales or profits.
For a prospective Aw franchisee, this means maintaining accurate and up-to-date financial records is crucial. Failing to submit these reports on time, even on three or more separate occasions within a twelve-month period, can be considered a breach of the franchise agreement. This could lead to penalties or even termination of the agreement, as stated in Item 22 of the FDD. Therefore, franchisees must establish robust accounting practices and adhere strictly to the reporting deadlines set by Aw.