Can the Aw Marketing Fund borrow money?
Aw Franchise · 2025 FDDAnswer from 2025 FDD Document
We may cause the Marketing Fund to borrow from us or other lenders to cover deficits of the Marketing Fund or cause the Marketing Fund to invest any surplus for future use by the Marketing Fund. All interest earned on monies contributed to the Marketing Fund will be used to pay advertising, marketing and promotional costs of the Marketing Fund before other assets of the Marketing Fund are expended. We will prepare an annual statement of monies collected and costs incurred by the Marketing Fund and will furnish it to you on written request.
Source: Item 22 — CONTRACTS (FDD pages 39–40)
What This Means (2025 FDD)
According to Aw's 2025 Franchise Disclosure Document, the Marketing Fund can borrow money. Specifically, Aw is permitted to have the Marketing Fund borrow from Aw or other lenders to cover any deficits. Aw can also have the Marketing Fund invest any surplus for future use.
Interest earned on the Marketing Fund monies will be used to cover advertising, marketing, and promotional costs before using other assets of the Marketing Fund. At the franchisee's written request, Aw will furnish an annual statement of monies collected and costs incurred by the Marketing Fund.
This arrangement gives Aw flexibility in managing the Marketing Fund's finances, but it also means that franchisees might indirectly bear the costs of any borrowing through reduced marketing spend if the fund experiences a deficit. Franchisees should monitor the annual statements to understand how the Marketing Fund is being managed and whether borrowing is occurring.