What is the minimum amount that must be spent on a grand opening advertising campaign for an Aw franchise?
Aw Franchise · 2025 FDDAnswer from 2025 FDD Document
| Type of Expenditure | Amount- Range Estimated | Method of Payment | When Payable | To Whom Payment is Made |
|---|---|---|---|---|
| Grand Opening | $15,000 - | As incurred | During the 90 | Suppliers |
| Advertising (Note 10) | $30,000 | days after opening |
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- Grand Opening Advertising. You must spend a minimum of $15,000 on a grand opening advertising campaign during the first 90 days of operation of your Papa Ray's Pizza Restaurant. You must follow our guidelines for the grand opening advertising, marketing and promotional programs and get our prior approval of advertising used. We may require that you use designated suppliers for grand opening advertising.
Source: Item 7 — ESTIMATED INITIAL INVESTMENT (FDD pages 16–19)
What This Means (2025 FDD)
According to Aw's 2025 Franchise Disclosure Document, a franchisee must spend a minimum of $15,000 on a grand opening advertising campaign. This expenditure must occur within the first 90 days of operation of the Papa Ray's Pizza Restaurant. The FDD indicates that the upper end of the range for grand opening advertising is $30,000.
The FDD stipulates that the franchisee must adhere to Aw's guidelines for these advertising, marketing, and promotional programs and must secure prior approval for all advertising materials used. Aw may also require franchisees to use designated suppliers for grand opening advertising.
This grand opening advertising expenditure is part of the total estimated initial investment, which ranges from $213,730 to $464,080. The payment for grand opening advertising is typically due as incurred during the 90 days after opening, and is paid to the suppliers.
Prospective franchisees should carefully consider these requirements and budget accordingly, ensuring they understand Aw's specific guidelines and approved suppliers for grand opening advertising to remain compliant with the franchise agreement.