Can Aw require a franchisee to have their financial statements prepared by a certified public accountant?

According to Aw's 2025 Franchise Disclosure Document, Aw retains the right to mandate that franchisees have their financial statements prepared by an independent certified public accountant on an annual basis. Furthermore, these statements must be signed by the franchisee. This requirement is part of Aw's broader oversight of financial reporting and compliance within its franchise system.

This provision enables Aw to ensure the accuracy and reliability of financial data submitted by franchisees. By reserving the right to require CPA-prepared statements, Aw aims to maintain consistent accounting practices and minimize discrepancies across all franchise locations. This can be particularly important for calculating royalties, marketing contributions, and assessing the overall financial health of individual franchises.

For a prospective Aw franchisee, this means they may incur additional costs for engaging a certified public accountant to prepare their annual financial statements. The franchisee is responsible for covering these accounting expenses. It is important for franchisees to factor in these potential accounting fees when evaluating the overall cost of operating an Aw franchise. Franchisees should clarify with Aw under what specific circumstances this requirement would be enforced to better anticipate these costs.