factual

Are the remedies available to Aw for audit discrepancies in addition to other remedies?

Aw Franchise · 2025 FDD

Answer from 2025 FDD Document

The above remedies are in addition to all our other remedies and rights under this Agreement or under applicable law.

Source: Item 22 — CONTRACTS (FDD pages 39–40)

What This Means (2025 FDD)

According to Aw's 2025 Franchise Disclosure Document, the remedies available to them for audit discrepancies are in addition to all other remedies and rights they have under the agreement or applicable law. This means that if an audit reveals an understatement of gross revenue at a Papa Ray's Pizza Restaurant, Aw has several avenues for recourse.

Specifically, Aw can require the franchisee to pay the marketing contributions due, along with interest on the understated amount from the original due date until payment. Furthermore, if the audit was necessitated by the franchisee's failure to provide required reports or if the understatement of gross revenue exceeds two percent for any period, Aw can demand reimbursement for the cost of the audit. This reimbursement covers expenses such as attorney fees, independent accountant charges, and travel costs for Aw's employees.

The fact that these remedies are "in addition to all our other remedies and rights" suggests that Aw retains the ability to pursue other legal or contractual options to address the audit discrepancies. This could include actions such as demanding specific performance, seeking injunctive relief, or even terminating the franchise agreement under certain circumstances, depending on the severity and nature of the discrepancies uncovered during the audit.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.