When is reimbursement of taxes due for an Aw franchise?
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 against them for the franchisee's operation of their business or on any payments the franchisee makes to Aw. This reimbursement is due upon demand. This condition applies only if taxes of this type are assessed against Aw due to the franchisee's operations.
This means that if a taxing authority assesses taxes directly on Aw as a result of the franchisee's business activities or payments, Aw will pass those tax obligations on to the franchisee. The franchisee will then be responsible for paying those taxes to Aw promptly after Aw requests reimbursement.
Franchisees should be aware of this potential liability and factor it into their financial planning. It is important to understand what types of taxes could be assessed against Aw as a result of the franchisee's business and to budget accordingly to ensure funds are available to cover these reimbursements when demanded.