What is included in the audit/inspection costs for Aw?
Aw Franchise · 2025 FDDAnswer from 2025 FDD Document
| TYPE OF FEE1,3 | AMOUNT | DUE DATE | REMARKS |
|---|---|---|---|
| conference. | conference, and if you fail to do so, the conference fee must still be paid to us. You are responsible for your travel expenses. | ||
| Transfer Fee | $9,000 or $5,000 if the transferee is an existing franchisee approved by us for additional franchises. | Before transfer | Payable when you transfer the franchise, an interest in Papa Ray’s Pizza Restaurant, the assets of Papa Ray’s Pizza Restaurant or an interest in the franchisee; no fee if the transfer is to a corporation owned by you. |
| Renewal Fee | $2,500 | When you sign renewal agreement | Payable if you renew your franchise at the end of the initial term. |
| Audit/Inspection Costs | Cost of audit or inspection, including charges of professional advisors, and travel expenses, room and board and compensation or fees of our employees or agents | Upon billing | Payable if audit necessary because of your failure to file reports, supporting records, financial statements, or other required information in a timely fashion or if any audit reveals an understatement of the reported Gross Sales of greater than 2%. |
| Service Charge | Greater of $150 or the highest interest rate allowed by law not to exceed 1 ½%. | Upon billing | Payable on all overdue accounts due to us. |
| Management Fee | Currently $250 per day, plus expenses; subject to increase | As agreed | Payable to us during period that our appointed manager manages Papa Ray’s Pizza Restaurant, at our option, after 14 days from your receipt of a default notice or 30 days following your death or disability. |
| Fee for supplier approval | $250 | Upon demand | Payable if you request our determination if a supplier meets our approval. |
| Relocation fee | $500 plus any travel expenses incurred by us in visiting the proposed site. | Upon demand | Payable if you relocate your store. You must obtain our prior consent to relocate. |
Source: Item 6 — OTHER FEES (FDD pages 13–16)
What This Means (2025 FDD)
According to Aw's 2025 Franchise Disclosure Document, the audit/inspection costs include the cost of the audit or inspection itself, charges from professional advisors, and travel expenses. These travel expenses cover room and board, compensation, and fees for Aw's employees or agents.
This means that if Aw conducts an audit or inspection of your Papa Ray's Pizza Restaurant, you will be responsible for covering not only the direct costs of the audit but also any related expenses incurred by Aw and its representatives. This can include fees for accountants or other professionals involved in the audit, as well as the costs of travel, lodging, and meals for Aw personnel.
These audit/inspection costs are payable upon billing and are incurred if an audit is necessary due to your failure to file reports, supporting records, financial statements, or other required information in a timely manner. Additionally, these costs are payable if any audit reveals an understatement of reported Gross Sales of greater than 2%. Therefore, it is crucial for Aw franchisees to maintain accurate records and submit all required reports on time to avoid triggering an audit and incurring these potentially significant costs.