If Aw discontinues the Marketing Fund, how will the unspent amounts be distributed?
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, should Aw discontinue its Marketing Fund, any unspent amounts in the fund on the date of discontinuance 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 ensures that franchisees who have recently contributed more to the fund will receive a larger share of the remaining balance.
This policy provides some assurance to franchisees that their contributions to the Marketing Fund will not be lost if the fund is terminated. Instead, the remaining funds will be returned to the franchisees based on their recent contribution levels. This is a fairly common practice in franchising, as it aims to equitably distribute unused marketing funds back to those who financed them.
It's important for prospective Aw franchisees to understand how the Marketing Fund operates, including the conditions under which it can be discontinued and how the remaining funds would be distributed. Franchisees should also consider the implications of the 60-day notice period Aw is required to provide before discontinuing the fund, as this allows franchisees some time to adjust their marketing strategies accordingly.