Is the management fee for an Aw franchise subject to increase?
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 subject to increase. Currently, the management fee is $250 per day, plus expenses. This fee is payable to Aw during the period that an appointed manager manages the Papa Ray’s Pizza Restaurant.
This management arrangement is at Aw's option and can occur after 14 days from the franchisee's receipt of a default notice or 30 days following the franchisee's death or disability. The "as agreed" due date suggests that the specific terms of payment are determined on a case-by-case basis when the management arrangement is put in place.
For a prospective Aw franchisee, this means that while the initial management fee is set at $250 per day plus expenses, Aw retains the right to increase this fee. It is important to note that this fee is only applicable under specific circumstances, such as after a default notice or in the event of death or disability. Franchisees should clarify with Aw the conditions under which the fee might increase and what factors would influence such an increase.