factual

Is the National Marketing Fund contribution for an Aw franchise refundable?

Aw Franchise · 2025 FDD

Answer from 2025 FDD Document

In the event we discontinue the Marketing Fund, we will distribute all unspent amounts existing in the Marketing Fund on the date of discontinuance to franchisees in proportion to their respective contributions for the most recent six (6) months.

Source: Item 22 — CONTRACTS (FDD pages 39–40)

What This Means (2025 FDD)

According to Aw's 2025 Franchise Disclosure Document, the National Marketing Fund contributions are generally not refundable. However, there is a specific scenario where franchisees may receive a portion of the fund back. If Aw discontinues the Marketing Fund, any unspent amounts existing in the fund on the date of discontinuance will be distributed to franchisees. This distribution will be in proportion to each franchisee's contributions over the most recent six months.

This means that while franchisees cannot typically get a refund of their marketing fund contributions, they may receive a portion of the unspent funds if Aw decides to discontinue the Marketing Fund. This is a conditional and potential return, not a guaranteed refund. The amount returned would depend on the unspent balance in the fund at the time of discontinuance and the franchisee's contribution history.

It's important to note that Aw has the right to discontinue or reestablish the Marketing Fund with sixty days' notice. This clause provides Aw with flexibility in managing the marketing strategy and fund allocation. For a prospective franchisee, this implies that the marketing fund contribution is a necessary and ongoing expense, but there is a possibility of receiving a portion back if the fund is discontinued. Franchisees should factor this potential, albeit conditional, return into their financial planning and understand the circumstances under which it would occur.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.