Are franchisees' contributions to the Marketing Fund considered when distributing unspent amounts if Aw discontinues the fund?
Aw Franchise · 2025 FDDAnswer from 2025 FDD Document
In the event we discontinue the Marketing Fund, we will distribute all unspent amounts existing in the Marketing Fund on the date of discontinuance to franchisees in proportion to their respective contributions for the most recent six (6) months.
Source: Item 22 — CONTRACTS (FDD pages 39–40)
What This Means (2025 FDD)
According to Aw's 2025 Franchise Disclosure Document, if Aw discontinues the Marketing Fund, any unspent amounts will be distributed to franchisees. The distribution will be in proportion to each franchisee's contributions to the Marketing Fund over the most recent six months. This means that franchisees who have contributed more to the fund during that period will receive a larger share of the remaining funds.
This policy ensures that franchisees receive a fair return of the unspent funds, based on their recent financial input into the Marketing Fund. It also incentivizes franchisees to actively participate in and contribute to the Marketing Fund, knowing that their contributions will be considered if the fund is ever discontinued.
It is important for prospective Aw franchisees to understand how the Marketing Fund operates, including the contribution requirements and the distribution policy in case of discontinuation. Franchisees should also be aware of how Aw manages and accounts for the Marketing Fund, as detailed in Paragraph 12.1 of the franchise agreement, to ensure transparency and accountability.