What is the management fee 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, a management fee is payable to Aw during any period that an appointed manager manages the Papa Ray’s Pizza Restaurant. The fee is currently $250 per day, plus expenses, and is subject to increase. This fee is charged at Aw's option, beginning 14 days after the franchisee receives a default notice or 30 days following the franchisee's death or disability.
This means that if a franchisee defaults on their agreement or becomes unable to manage the business due to death or disability, Aw can step in and manage the restaurant. The franchisee (or their estate) will be responsible for paying Aw a daily management fee plus any expenses incurred during this period. The FDD specifies that the $250 per day fee is subject to increase, so the actual cost could be higher.
It is important for prospective Aw franchisees to understand the circumstances under which this management fee could be imposed and to factor this potential cost into their financial planning. Franchisees should also inquire about the criteria Aw uses to determine when to appoint a manager and whether there are any limitations on the duration of the management period. Understanding these details can help franchisees prepare for unforeseen circumstances and protect their investment.