What kind of taxes would an Aw franchisee be required to reimburse?
Aw Franchise · 2025 FDDAnswer from 2025 FDD Document
| TYPE OF FEE1,3 | AMOUNT | DUE DATE | REMARKS |
|---|---|---|---|
| omissions, our enforcement of this Agreement, our defense of our actions taken under this Agreement or your breach of the Franchise Agreement. | |||
| Costs and Attorney's Fees | Will vary under circumstances | As incurred | You must reimburse us for costs and attorney's fees we incur in actions against you to enforce the Franchise Agreement. |
| Reimbursement for insurance costs | Costs and premiums incurred by us on your behalf. | Upon demand | Payable if we incur costs to purchase insurance for you if you fail to do so. |
| Reimbursement of Taxes | Actual assessed taxes against us for your operation of your business or on any payments you make to us. | Upon demand | Only payable if taxes of this type are assessed against us. |
| Software license fees | Undetermined since proprietary software has not yet been developed. | As arranged | Payable if we develop proprietary software that you must use for operating your Papa Ray’s Pizza Restaurant. |
Source: Item 6 — OTHER FEES (FDD pages 13–16)
What This Means (2025 FDD)
According to Aw's 2025 Franchise Disclosure Document, franchisees may be required to reimburse Aw for certain taxes. Specifically, Aw franchisees are responsible for reimbursing Aw for actual assessed taxes against Aw for the franchisee's operation of their business or on any payments the franchisee makes to Aw.
This reimbursement is only payable if taxes of this type are assessed against Aw. The reimbursement is due upon demand, meaning Aw will notify the franchisee when such taxes are due and payable. This condition means that Aw franchisees are not automatically responsible for all taxes, but only those specifically assessed against Aw due to the franchisee's operations or payments.
It is important for prospective Aw franchisees to understand the potential tax liabilities associated with operating the franchise and making payments to Aw. Franchisees should consult with a tax advisor to fully understand the implications of this reimbursement requirement and how it may affect their overall financial obligations. Understanding these potential tax liabilities is a crucial part of assessing the financial viability of an Aw franchise.