When is reimbursement of taxes due to Aw?
Aw Franchise · 2025 FDDAnswer from 2025 FDD Document
| TYPE OF FEE1,3 | AMOUNT | DUE DATE | REMARKS |
|---|---|---|---|
| omissions, our enforcement of this Agreement, our defense of our actions taken under this Agreement or your breach of the Franchise Agreement. | |||
| Costs and Attorney's Fees | Will vary under circumstances | As incurred | You must reimburse us for costs and attorney's fees we incur in actions against you to enforce the Franchise Agreement. |
| Reimbursement for insurance costs | Costs and premiums incurred by us on your behalf. | Upon demand | Payable if we incur costs to purchase insurance for you if you fail to do so. |
| Reimbursement of Taxes | Actual assessed taxes against us for your operation of your business or on any payments you make to us. | Upon demand | Only payable if taxes of this type are assessed against us. |
| Software license fees | Undetermined since proprietary software has not yet been developed. | As arranged | Payable if we develop proprietary software that you must use for operating your Papa Ray’s Pizza Restaurant. |
Source: Item 6 — OTHER FEES (FDD pages 13–16)
What This Means (2025 FDD)
According to Aw's 2025 Franchise Disclosure Document, franchisees are required to reimburse Aw for actual assessed taxes under specific circumstances. This reimbursement is due 'upon demand.' This condition applies only if taxes are assessed against Aw due to the franchisee's operation of the business or any payments made to Aw.
This means that if a taxing authority assesses taxes directly on Aw because of how a franchisee is running their Aw business or due to payments the franchisee makes to Aw, the franchisee will have to cover those tax expenses. The amount will be the 'actual assessed taxes,' meaning the precise amount the taxing authority levies.
The 'upon demand' clause indicates that Aw will request this reimbursement from the franchisee when these tax liabilities arise. It is important for prospective franchisees to understand this potential financial responsibility, as tax laws and their application can vary. Franchisees should maintain accurate records and ensure compliance with all applicable tax regulations to minimize the risk of triggering such tax assessments against Aw.
It would be prudent for a potential Aw franchisee to seek clarification from Aw regarding what specific types of taxes this reimbursement policy covers and under what circumstances these taxes have been assessed in the past. Understanding these details can help a franchisee better prepare for potential tax liabilities and manage their business operations accordingly.