What is the latest day of the week that the Aw royalty fee must be paid?
Aw Franchise · 2025 FDDAnswer from 2025 FDD Document
enses we incur in furnishing assistance and services to you and of our lost opportunity to negotiate with others for this franchise, you agree that we will have fully earned the Initial Franchise Fee and that it becomes non-refundable upon signing this Agreement.
- 10.2 Royalty Fee. You agree to pay us a weekly royalty fee. You agree to pay five percent (5%) of the Gross Revenue (as defined below) of the Papa Ray's Pizza Restaurant. The royalty fee will be payable on Wednesday of each week for the period covering the previous Monday through Sunday via electronic transfer as described in Paragraph 10.7 below. The royalty fee is not refundable, in whole or in part, under any circumstances.
- 10.3 National Marketing Fund Contribution. Recognizing the value of advertising and marketing to the goodwill and public image of Papa Ray's Pizza Restaurants, we intend to establish, maintain and administer an advertising, marketing and promotional fund (the "Marketing Fund") for such advertising, marketing and promotions as we may deem necessary or appropriate in our sole discretion. You agree to contribute to the Marketing Fund two percent (2%) of the Gross Revenue (as defined below) of the Papa Ray's Pizza Restaurant. We have the right to discontinue or reestablish the Marketing Fund upon sixty (60) days advance notice to you. 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. This Marketing Fund contribution is due weekly along with the royalty fee on Wednesday of each week for the gross revenue of the preceding Monday through Sunday via electronic transfer. A further description of the Marketing Fund and your obligations with respect to advertising, marketing and promoting the Papa Ray's Pizza Restaurant will be found in Paragraph 12.1 of this Agreement.
Source: Item 22 — CONTRACTS (FDD pages 39–40)
What This Means (2025 FDD)
According to Aw's 2025 Franchise Disclosure Document, the royalty fee is payable on Wednesday of each week. This payment covers the gross revenue from the preceding Monday through Sunday. The royalty fee is a percentage of the gross revenue, specifically five percent.
In addition to the royalty fee, Aw franchisees must also contribute two percent of their gross revenue to the National Marketing Fund. This contribution is also due weekly on Wednesday, alongside the royalty fee. Both the royalty fee and the marketing fund contribution are to be paid via electronic transfer.
Aw requires franchisees to submit a statement of gross revenue for the previous Monday through Sunday on Tuesday of each week. The payments for the royalty fee and Marketing Fund contributions will be transferred by Noon on Wednesday of each week. If a franchisee fails to submit a report of gross revenue, Aw may transfer or debit an amount equal to 120% of the last amount transferred for payment of the royalty and Marketing Fund contribution.
It is important for prospective Aw franchisees to understand these payment terms and ensure they have the necessary systems in place to accurately track gross revenue and make timely payments. Failure to comply with these payment obligations could result in penalties or even termination of the franchise agreement.