Is the Aw Marketing Fund intended to maximize recognition of the Marks?
Aw Franchise · 2025 FDDAnswer from 2025 FDD Document
no requirement that the Marketing Fund be audited.
You understand and acknowledge that the Marketing Fund is intended to maximize recognition of the Marks and patronage of Papa Ray's Pizza Restaurants. Although we intend to use the Marketing Fund to develop advertising, marketing and promotional materials, and to place advertising in a manner that will benefit all Papa Ray's Pizza Restaurants, we have no obligation to ensure that expenditures by the Marketing Fund in or affecting any geographic area are proportionate or equivalent to contributions to the Marketing Fund by Papa Ray's Pizza Restaurants operating in that geographic area or that any Papa Ray's Pizza Restaurant will benefit directly or in proportion to its contribution to the Marketing Fund from the development of advertising, marketing and promotional materials or the placement of advertising. Contributions to the Marketing Fund will not be used principally to solicit new franchise sales. We assume no direct or indirect liability or obligation to you with respect to the maintenance, direction or administration of the Marketing Fund. We have the right to discontinue or reestablish the Marketing Fund. If the Marketing Fund is discontinued, all amounts remaining in the Marketing Fund on the date of discontinuance will be distributed to franchisees in proportion to their respective contributions.
In the year ended December 31, 2024, we did not collect any Marketing Fund contributions from franchisees.
We currently do not have an advertising council of franchisees that advises us on advertising policies, but we may establish one in the future.
Source: Item 22 — CONTRACTS (FDD pages 39–40)
What This Means (2025 FDD)
According to Aw's 2025 Franchise Disclosure Document, the Marketing Fund is intended to maximize recognition of the Marks and patronage of Papa Ray's Pizza Restaurants. Aw will endeavor to use the Marketing Fund to develop advertising, marketing, and promotional materials, and to place advertising in a manner that will benefit all Papa Ray's Pizza Restaurants. However, Aw undertakes no obligation to ensure that expenditures by the Marketing Fund in or affecting any geographic area are proportionate or equivalent to contributions to the Marketing Fund by Papa Ray's Pizza Restaurants operating in that geographic area. Also, Aw does not ensure that any Papa Ray's Pizza Restaurant will benefit directly or in proportion to its contribution to the Marketing Fund from the development of advertising, marketing and promotional materials or the placement of advertising.
This means that while the goal of the Marketing Fund is to increase brand awareness and customer traffic for all Aw locations, franchisees should not expect a direct correlation between their contributions and the benefits they receive. The franchisor has the discretion to allocate funds as they see fit, which may not always align with individual franchisee expectations.
In addition to contributing to the Marketing Fund, Aw franchisees are required to spend a minimum of $3,800.00 per month on local advertising, marketing, and promotion after the first three months of operation. These local advertising expenditures are subject to Aw's approval and direction, and Aw may require franchisees to use designated suppliers for certain types of local advertising. This local advertising requirement ensures that franchisees are actively promoting their individual locations in addition to the broader marketing efforts of the Marketing Fund.