What is the minimum monthly local advertising expenditure for Aw, expressed numerically?
Aw Franchise · 2025 FDDAnswer from 2025 FDD Document
eg)
development of advertising, marketing and promotional materials or the placement of advertising. Except as expressly provided in this Paragraph 12.1, we assume no direct or indirect liability or obligation to you with respect to the maintenance, direction, or administration of the Marketing Fund.
- 12.2 Local Advertising. Once you have completed the grand opening advertising campaign during the first three (3) months of operation of your Papa Ray's Pizza Restaurant, in addition to the requirement for you to contribute to the Marketing Fund, you must spend on local advertising, marketing and promotion a minimum of Three Thousand Eight Hundred Dollars ($3,800.00) per month throughout the term of this Agreement. Such expenditures will be made directly by you, subject to our approval and direction. We may require that
Source: Item 22 — CONTRACTS (FDD pages 39–40)
What This Means (2025 FDD)
According to Aw's 2025 Franchise Disclosure Document, franchisees are required to spend a minimum of $3,800.00 per month on local advertising, marketing, and promotion after the initial three-month grand opening period. This expenditure is in addition to any contributions the franchisee must make to the Marketing Fund.
This requirement means that a prospective Aw franchisee must budget not only for the initial franchise fee, royalty fees, and marketing fund contributions, but also for a significant ongoing monthly advertising expense. 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 advertising.
Franchisees must provide Aw with an accurate accounting of their monthly local advertising and marketing expenditures every calendar quarter. Furthermore, Aw retains the right to increase the amount a franchisee must spend on local advertising if the franchisee fails to meet the minimum annual gross revenue of $300,000 after a specified period. This highlights the importance of effective local marketing in driving revenue and maintaining compliance with the franchise agreement.