When is the management fee due for an Aw franchise?
Aw Franchise · 2025 FDDAnswer from 2025 FDD Document
| TYPE OF FEE1,3 | AMOUNT | DUE DATE | REMARKS |
|---|---|---|---|
| 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. |
Source: Item 6 — OTHER FEES (FDD pages 13–16)
What This Means (2025 FDD)
According to Aw's 2025 Franchise Disclosure Document, the management fee is currently $250 per day, plus expenses, and is subject to increase. This fee is payable to Aw during the period that their appointed manager manages the Papa Ray’s Pizza Restaurant.
The management fee becomes due, at Aw's option, after 14 days from your receipt of a default notice or 30 days following your death or disability. This means that Aw may step in to manage the restaurant if the franchisee is unable to do so, either temporarily due to a default or permanently due to death or disability.
It is important for a prospective Aw franchisee to understand the conditions under which the management fee may be imposed and how it could impact their profitability. The franchisee should clarify with Aw the specific circumstances that would trigger a default notice and what expenses are included in addition to the daily management fee.