Does Aw require electronic debiting of a franchisee's business account for weekly payments?
Aw Franchise · 2025 FDDAnswer from 2025 FDD Document
Gross Revenue will not include any receipts from sales, use, or service taxes collected from customers and paid to the appropriate taxing authority, promotional customer discounts and coupons, authorized employee discounts and complimentary products for promotional or charitable purposes.
- 10.5 Electronic Funds Transfer. You must make the weekly payments for the royalty fee, Marketing Fund contributions and any and all other fees that may become due and payable to us hereunder by either electronic transfer or electronic debiting of your business account, or in any other manner that we may hereinafter designate. You must execute such authorization forms as are necessary for electronic transfer or debiting as soon as you have established a bank account for your Papa Ray's Pizza Restaurant and shall execute any other documents as may be required from time to time by us to permit us to electronically transfer funds or debit your account for the purpose
of making the required payments. You may not make any change in your banking relationships, including any change in the account number of your business account, or any change in banks, without our prior written approval and your execution of new authorization forms.
On Tuesday of each week, you must submit to us in the form and manner we specify a statement of Gross Revenue for the previous Monday through Sunday. Payments of the royalty fee and Marketing Fund contributions will be transferred by Noon on Wednesday of each week for the previous Monday through Sunday. The amount of the royalty and Marketing Fund contribution transferred will be based on the Gross Revenue reported by you. You agree to make the funds available for withdrawal by electronic transfer or debiting before each Wednesday at Noon. If you fail to submit a report of the Gross Revenue of your Papa Ray's Pizza Restaurant, we may transfer or debit from your account an amount which is one hundred twenty percent (120%) of the last amount we transferred for payment of the royalty and Marketing Fund contribution.
Source: Item 22 — CONTRACTS (FDD pages 39–40)
What This Means (2025 FDD)
According to Aw's 2025 Franchise Disclosure Document, franchisees must make weekly payments for royalty fees, Marketing Fund contributions, and any other fees due to Aw via electronic transfer or electronic debiting from their business account, or in any other manner that Aw designates. Franchisees must complete the necessary authorization forms for electronic transfer or debiting once they establish a bank account for their Aw restaurant.
Franchisees must also get Aw's written approval and execute new authorization forms before making any changes to their banking relationships, including changes to their business account number or banks. On Tuesdays, franchisees must submit a statement of Gross Revenue for the previous Monday through Sunday. Payments for the royalty fee and Marketing Fund contributions will be transferred by Noon on Wednesday of each week for the previous Monday through Sunday.
The amount of the royalty and Marketing Fund contribution transferred will be based on the Gross Revenue reported by the franchisee. Franchisees must ensure funds are available for withdrawal by electronic transfer or debiting before each Wednesday at Noon. If a franchisee fails to report Gross Revenue, Aw may transfer or debit 120% of the last amount transferred for royalty and Marketing Fund contributions. If the transferred amount is less than what is owed, Aw will transfer the balance or credit the excess against the next transfer.