What is the name of Aw's system-wide marketing fund?
Aw Franchise · 2025 FDDAnswer from 2025 FDD Document
12.1 Marketing Fund. We administer a system-wide marketing fund ("Marketing Fund"). Your required contributions to the Marketing Fund are set 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. Although we will endeavor to use the Marketing Fund to develop advertising, marketing and promotional materials, and to place advertising in a manner that will benefit all Papa Ray's Pizza Restaurants, we undertake no obligation to ensure that expenditures by the Marketing Fund in or affecting any geographic area are proportionate or equivalent to contributions to the Marketing Fund by Papa Ray's Pizza Restaurants operating in that geographic area or that any Papa Ray's Pizza Restaurant will benefit directly or in proportion to its contribution to the Marketing Fund from the
Source: Item 22 — CONTRACTS (FDD pages 39–40)
What This Means (2025 FDD)
According to Aw's 2025 Franchise Disclosure Document, the company administers a system-wide marketing fund referred to as the "Marketing Fund." Aw has the authority to direct all advertising, marketing, and promotional programs financed by this fund. This includes making decisions about creative concepts, materials, endorsements, and the placement and allocation of these programs across different geographic areas, markets, and media channels.
The Marketing Fund can cover various costs, such as preparing video, audio, and written advertising materials, managing national, regional, or local advertising programs (including direct mail and media advertising), maintaining the company website, supporting public relations, market research, and providing advertising materials to Aw restaurants. The fund operates as a separate account, distinct from Aw's other funds, and is primarily used for advertising, marketing, and promotional activities. However, it can also cover reasonable salaries, administrative costs, and overhead related to managing the fund.
Aw may spend more or less than the total contributions from Aw restaurants in any given fiscal year. The fund can also borrow money or invest surplus funds for future use. Any interest earned on the Marketing Fund will be used to pay for advertising, marketing, and promotional costs before using other assets of the fund. Aw will provide an annual statement of monies collected and costs incurred by the Marketing Fund to franchisees upon written request. This fund is intended to maximize recognition of the Aw marks and patronage of Aw restaurants.