Does Aw's officers or managers have an ownership interest in an approved supplier for Papa Ray's Pizza Restaurants?
Aw Franchise · 2025 FDDAnswer from 2025 FDD Document
Other than our affiliate, none of our officers or managers has an ownership interest in an approved supplier.
The purchase of products from designated suppliers, approved suppliers or in accordance with specifications and standards will represent approximately 60% to 65% of your initial purchases and leases in opening the Papa Ray's Pizza Restaurant and 25% to 55% of your ongoing purchases and leases in operating the Papa Ray's Pizza Restaurant.
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, other than its affiliate, none of Aw's officers or managers has an ownership interest in an approved supplier. This means that Aw's leadership does not directly profit from the suppliers that franchisees are required to use, except through the affiliate.
This arrangement is fairly common in franchising, as franchisors often negotiate with suppliers to benefit franchisees. Aw also states that they negotiate arrangements with suppliers for the benefit of franchisees and currently receive rebates from two suppliers based on a percentage of certain purchases by their franchisees.
However, Aw does require franchisees to purchase from designated or approved suppliers to comply with the franchise agreement. These purchases will represent approximately 60% to 65% of initial purchases and leases in opening a Papa Ray's Pizza Restaurant and 25% to 55% of ongoing purchases and leases in operating the Papa Ray's Pizza Restaurant. While Aw does not provide material benefits to franchisees based on their use of designated or approved suppliers, compliance is mandatory to remain in good standing with the franchise agreement.