When does the minimum annual gross revenue requirement begin 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 delivery of written notice to you, and thereafter, we may establish another Papa R
Source: Item 22 — CONTRACTS (FDD pages 39–40)
What This Means (2025 FDD)
According to Aw's 2025 Franchise Disclosure Document, a franchisee must meet a minimum annual gross revenue starting in the second year of operation. The minimum annual gross revenue is $300,000.00.
If an Aw franchisee fails to meet the $300,000.00 minimum, they will be given an additional 12 months to improve their revenue. If, after this 12-month period, the franchisee still does not meet the minimum, Aw has the option to take certain actions.
Aw can increase the amount the franchisee must spend on local advertising, reduce or eliminate the franchisee's protected area (potentially allowing Aw to establish another franchise nearby), or terminate the franchise agreement altogether. This minimum revenue requirement and the potential consequences of not meeting it are important considerations for prospective Aw franchisees.