If an Aw franchisee submits a check that is not honored, who pays the service charges?

According to Aw's 2025 Franchise Disclosure Document, the franchisee is responsible for covering service charges associated with dishonored checks. Specifically, if an Aw franchisee submits a check that is not honored or is returned due to insufficient funds, the franchisee must pay Aw any and all service charges that Aw incurs as a result.

This provision ensures that Aw is not financially burdened by the franchisee's banking errors or insufficient funds. It also incentivizes franchisees to maintain sufficient funds and manage their accounts responsibly to avoid these charges. The amount of these service charges is not specified in the FDD, meaning it could vary based on Aw's bank's policies and the number of checks that are not honored.

For a prospective Aw franchisee, this means they need to be diligent in managing their finances and ensuring they have sufficient funds to cover all payments to Aw. Failure to do so will result in additional service charges, which can add to the overall cost of operating the franchise. It is advisable for potential franchisees to inquire about the typical range of these service charges to better prepare their financial planning.