factual

What happens if the Aw Marketing Fund has a surplus?

Aw Franchise · 2025 FDD

Answer from 2025 FDD Document

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.

Source: Item 22 — CONTRACTS (FDD pages 39–40)

What This Means (2025 FDD)

According to Aw's 2025 Franchise Disclosure Document, the Marketing Fund may invest any surplus for future use by the Marketing Fund. Any interest earned on the Marketing Fund monies will be used to pay for advertising, marketing, and promotional costs before other assets of the Marketing Fund are used.

This means that if the Marketing Fund has more money than it needs in a given period, Aw has the option to invest the surplus. The returns from these investments are then earmarked specifically to cover future advertising, marketing, and promotional expenses. This could potentially reduce the need for additional contributions from franchisees in the future, or allow for more extensive marketing campaigns.

It is important for prospective franchisees to understand that Aw has broad discretion over how the Marketing Fund is managed and spent. While surpluses are reinvested for marketing purposes, Aw is not obligated to use the funds in a way that directly benefits each individual Papa Ray's Pizza Restaurant in proportion to its contribution. Franchisees should inquire about the historical performance of the Marketing Fund and Aw's investment strategy to better understand how surpluses are managed and utilized.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.