Can the Aw Marketing Fund be used to provide promotional materials to Aw restaurants?
Aw Franchise · 2025 FDDAnswer from 2025 FDD Document
forth in Paragraph 10.3 of this Agreement.
We will be entitled to direct all advertising, marketing and promotional programs financed by the Marketing Fund, with sole discretion over the creative concepts, materials, and endorsements used in them, and the geographic, market, and media placement and allocation of the programs. You agree that the Marketing Fund may be used to pay the costs of preparing and producing video, audio and written advertising materials; administering national, regional or local advertising programs including, without limitation, direct mail and other media advertising, and employing advertising agencies to assist in those activities; establishing and maintaining the Company Website; supporting public relations, market research and marketing activities; and providing advertising, marketing and promotional materials to Papa Ray's Pizza Restaurants. The Marketing Fund will furnish you with approved advertising, marketing and promotional materials at its direct cost of producing those materials.
The Marketing Fund will be a separate and distinct account and will be accounted for separately from the other funds of the Company and will not be used to defray any of our general operating expenses, except for any reasonable salaries, administrative costs and overhead we may incur in activities reasonably related to the administration of the Marketing Fund and its advertising, marketing and promotional programs (including, without limitation, conducting market research, preparing advertising, marketing and promotional materials, and collecting and accounting for contributions to the Marketing Fund). We may spend in any fiscal year an amount greater or less than the total contribution of Papa Ray's Pizza Restaurants to the Marketing Fund in that year. 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.
You understand and acknowledge that the Marketing Fund is intended to maximize recognition of the Marks and patronage of Papa Ray's Pizza Restaurants.
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 be used to provide advertising, marketing, and promotional materials to Aw restaurants. Aw has sole discretion over the advertising, marketing, and promotional programs financed by the Marketing Fund. This includes the creative concepts, materials, endorsements, geographic placement, market placement, and media allocation of the programs. The Marketing Fund will furnish franchisees with approved advertising, marketing, and promotional materials at its direct cost of producing those materials.
The Marketing Fund is a separate and distinct account from Aw's other funds. It will not be used to defray any of Aw's general operating expenses, except for reasonable salaries, administrative costs, and overhead related to the administration of the Marketing Fund and its advertising, marketing, and promotional programs. Aw may spend more or less than the total contribution of Aw restaurants to the Marketing Fund in any fiscal year. The Marketing Fund may borrow from Aw or other lenders to cover deficits or invest any surplus for future use. All interest earned on monies contributed to the Marketing Fund will be used to pay advertising, marketing, and promotional costs before other assets of the Marketing Fund are expended.
Aw will prepare an annual statement of monies collected and costs incurred by the Marketing Fund and will furnish it to franchisees on written request. If Aw discontinues the Marketing Fund, all unspent amounts will be distributed to franchisees in proportion to their respective contributions for the most recent six months. Franchisees are also required to spend a minimum of $3,800.00 per month on local advertising, marketing, and promotion, subject to Aw's approval and direction, after the grand opening advertising campaign during the first three months of operation.