What happens if the Aw Marketing Fund has a deficit?
Aw Franchise · 2025 FDDAnswer from 2025 FDD Document
We may spend in any fiscal year an amount greater or less than the total contribution of Papa Ray's Pizza Restaurants to the Marketing Fund in that year. We may cause the Marketing Fund to borrow from us or other lenders to cover deficits of the Marketing Fund or cause the Marketing Fund to invest any surplus for future use by the Marketing Fund. All interest earned on monies contributed to the Marketing Fund will be used to pay advertising, marketing and promotional costs of the Marketing Fund before other assets of the Marketing Fund are expended. We will prepare an annual statement of monies collected and costs incurred by the Marketing Fund and will furnish it to you on written request.
Source: Item 22 — CONTRACTS (FDD pages 39–40)
What This Means (2025 FDD)
According to Aw's 2025 Franchise Disclosure Document, Aw may borrow from itself or other lenders to cover deficits in the Marketing Fund. Alternatively, Aw can cause the Marketing Fund to invest any surplus for future use by the Marketing Fund.
This means that if the amount of money coming into the Marketing Fund (through franchisee contributions) is less than the amount Aw wants to spend on advertising, marketing, and promotional programs, Aw has options to ensure that these activities can continue. Aw is not obligated to reduce marketing efforts if there is a shortfall.
Any interest earned on the Marketing Fund will be used to pay for advertising, marketing, and promotional costs before other assets of the Marketing Fund are used. This suggests that Aw prioritizes using any investment income generated by the fund to offset marketing expenses. Aw will prepare an annual statement of monies collected and costs incurred by the Marketing Fund and will furnish it to franchisees on written request.