Does Aw negotiate arrangements with suppliers for the benefit of franchisees?
Aw Franchise · 2025 FDDAnswer from 2025 FDD Document
We negotiate arrangements with suppliers for the benefit of franchisees. We currently receive rebates from two suppliers based on a percentage of certain purchases by our franchisees.
Source: Item 8 — RESTRICTIONS ON SOURCES OF PRODUCTS AND SERVICES (FDD pages 19–21)
What This Means (2025 FDD)
According to Aw's 2025 Franchise Disclosure Document, Aw does negotiate arrangements with suppliers for the benefit of its franchisees. Specifically, Aw states that it currently receives rebates from two suppliers. These rebates are based on a percentage of certain purchases made by Aw franchisees.
This arrangement can be beneficial for franchisees as it potentially lowers the cost of goods purchased from those suppliers, increasing profitability. It is a fairly common practice in franchising for franchisors to negotiate with suppliers to leverage the collective buying power of the franchise network.
However, the FDD does not specify the exact percentage of the rebates or the criteria used to select these suppliers. Prospective franchisees should inquire about the specific terms of these arrangements, including which products are subject to rebates, the percentage of the rebates, and how these rebates are distributed or used to benefit the franchisees.