Does Aw provide any material benefits to franchisees based on their use of designated or approved suppliers?

According to Aw's 2025 Franchise Disclosure Document, Aw does not provide material benefits to franchisees for using designated or approved suppliers. However, franchisees are required to purchase from these suppliers to comply with the franchise agreement. While Aw itself doesn't offer direct benefits, it negotiates arrangements with suppliers for the benefit of franchisees. Currently, Aw receives rebates from two suppliers based on a percentage of certain purchases made by its franchisees. During the fiscal year that ended December 31, 2024, Aw did not receive any revenue from franchisee purchases.

This means that while franchisees are obligated to use approved suppliers for a significant portion of their initial (60% to 65%) and ongoing purchases and leases (25% to 55%), they won't receive direct incentives like renewal options or additional franchises for doing so. However, the negotiated rebates Aw receives from suppliers may indirectly benefit franchisees through potentially lower costs or other advantages.

Prospective franchisees should be aware that Aw maintains strict control over its supply chain to ensure quality and consistency across all locations. Although franchisees can request approval for alternative suppliers, Aw charges a non-refundable fee to cover the costs of the approval process. The approval may depend on factors like the supplier's reputation, product quality, and service standards. Aw also reserves the right to revoke approval of any supplier. This highlights the importance of carefully evaluating the approved supplier list and understanding the potential costs and restrictions associated with sourcing products and services for an Aw franchise.