What records are excluded from Aw's right to inspect and audit?
Aw Franchise · 2025 FDDAnswer from 2025 FDD Document
For purposes of this inspection and audit, records and reports exclude your employment records for your employees.
Such reporting shall not include any records for information relating to your employees, as you exclusively control your labor relations and employment practices.
Source: Item 22 — CONTRACTS (FDD pages 39–40)
What This Means (2025 FDD)
According to Aw's 2025 Franchise Disclosure Document, when Aw conducts inspections and audits of a franchisee's Papa Ray's Pizza Restaurant, certain records are excluded. Specifically, Aw is not entitled to inspect or audit the franchisee's employment records for their employees. This exclusion is mentioned in two separate instances within Item 22, emphasizing the franchisee's exclusive control over their labor relations and employment practices.
This means that while Aw has broad rights to inspect financial records, sales data, and other operational documents to ensure compliance with the franchise agreement, they cannot access sensitive employee information such as personnel files, payroll records, or performance reviews. This protects the franchisee's privacy and autonomy in managing their workforce.
This policy is fairly standard in franchising, as franchisors generally focus on brand standards, financial performance, and operational consistency rather than interfering in the franchisee's employee management. However, franchisees should still maintain accurate and compliant employment records, as other legal or regulatory bodies may require access to them.