What is the minimum annual gross revenue required for an Aw franchise?
Aw Franchise · 2025 FDDAnswer from 2025 FDD Document
resale, retail sale or further distribution by such third party. You shall not sell any products offered for sale through the Papa Ray's Pizza Restaurant through any Alternative Distribution Channels.
- 2.7 Minimum Annual Gross Revenue. Beginning with the second year of operation of the Papa Ray's Pizza Restaurant, you must have annual Gross Revenue for each year of operation of a minimum of Three Hundred Thousand Dollars ($300,000.00) ("Minimum Annual Gross Revenue"). If you do not achieve the Minimum Annual Gross Revenue for any year of operation,
you will be given the next twelve (12) months to increase revenues so that you meet the Minimum Annual Gross Revenue. If you do not meet the Minimum Annual Gross Revenue after having been given a twelve (12) month period to increase sales and achieve the Minimum Annual Gross Revenue, we may either (i) increase the amount that you must expend on local advertising pursuant to Paragraph 12.2 herein to an amount we in our discretion deem necessary in order to increase revenues, (ii) reduce or eliminate your Protected Area upon de
Source: Item 22 — CONTRACTS (FDD pages 39–40)
What This Means (2025 FDD)
According to Aw's 2025 Franchise Disclosure Document, beginning in the second year of operation, a Papa Ray's Pizza Restaurant franchise must achieve a minimum annual gross revenue of $300,000.00. This benchmark is a critical performance indicator, and failure to meet it can trigger specific actions by Aw.
If an Aw franchisee fails to meet the $300,000.00 minimum, they will be given a 12-month period to improve their revenue. If, after this period, the minimum is still not met, Aw has the option to intervene in several ways. First, Aw may increase the amount the franchisee is required to spend on local advertising, with the amount determined at Aw's discretion. Second, Aw can reduce or eliminate the franchisee's protected area, potentially allowing Aw to establish another Papa Ray's Pizza Restaurant in the area. Finally, Aw reserves the right to terminate the franchise agreement altogether.
This minimum revenue requirement underscores the importance of strong operational performance for Aw franchisees. It also highlights the potential risks associated with underperforming locations and the measures Aw might take to address such situations. Prospective franchisees should carefully consider their ability to meet this revenue target and understand the implications of failing to do so.