What happens to the interest earned on monies contributed to the Aw Marketing Fund?
Aw Franchise · 2025 FDDAnswer from 2025 FDD Document
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, all interest earned on the monies contributed to the Marketing Fund will be used to pay for advertising, marketing, and promotional costs associated with the Marketing Fund before any other assets from the fund are used.
This means that any interest generated by the Marketing Fund is directly reinvested into the fund's activities, specifically for advertising and promotional purposes. This could potentially increase the overall budget available for marketing initiatives, as the interest earned helps offset some of the costs.
Aw prepares an annual statement of monies collected and costs incurred by the Marketing Fund and will furnish it to franchisees upon written request. This provides transparency regarding the fund's financial activities, including how the interest earned is utilized. Franchisees have the right to request this statement to review the fund's performance and allocation of resources.