For how long must an Aw franchisee spend at least $3,800 per month on local advertising?
Aw Franchise · 2025 FDDAnswer from 2025 FDD Document
eg)
development of advertising, marketing and promotional materials or the placement of advertising. Except as expressly provided in this Paragraph 12.1, we assume no direct or indirect liability or obligation to you with respect to the maintenance, direction, or administration of the Marketing Fund.
- 12.2 Local Advertising. Once you have completed the grand opening advertising campaign during the first three (3) months of operation of your Papa Ray's Pizza Restaurant, in addition to the requirement for you to contribute to the Marketing Fund, you must spend on local advertising, marketing and promotion a minimum of Three Thousand Eight Hundred Dollars ($3,800.00) per month throughout the term of this Agreement. Such expenditures will be made directly by you, subject to our approval and direction. We may require that
Source: Item 22 — CONTRACTS (FDD pages 39–40)
What This Means (2025 FDD)
According to Aw's 2025 Franchise Disclosure Document, after the initial three-month grand opening advertising campaign, franchisees must spend a minimum of $3,800 per month on local advertising, marketing, and promotion throughout the entire term of the Franchise Agreement. These expenditures are made directly by the franchisee but are subject to Aw's approval and direction. Aw may also require franchisees to use designated suppliers for certain types of local advertising.
This ongoing local advertising requirement has significant implications for franchisees. It represents a substantial and sustained financial commitment in addition to other fees like royalty and marketing fund contributions. Franchisees need to budget carefully to ensure they can consistently meet this monthly advertising minimum. They must also adhere to Aw's guidelines and approval processes for all local advertising efforts.
Aw requires franchisees to furnish an accurate accounting of their monthly local advertising and marketing expenditures within thirty days of each calendar quarter's end. This reporting ensures compliance with the advertising requirements and allows Aw to monitor franchisees' marketing efforts. Failure to meet the minimum spending requirement or to provide accurate reporting could potentially lead to consequences outlined in the Franchise Agreement.