Can Aw require franchisees to use designated suppliers for grand opening advertising?
Aw Franchise · 2025 FDDAnswer from 2025 FDD Document
ions and legal and accounting fees.
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- Grand Opening Advertising. You must spend a minimum of $15,000 on a grand opening advertising campaign during the first 90 days of operation of your Papa Ray's Pizza Restaurant. You must follow our guidelines for the grand opening advertising, marketing and promotional programs and get our prior approval of advertising used. We may require that you use designated suppliers for grand opening advertising.
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- Additional Funds. This item estimates your expenses for the first 3 months of operation.
Source: Item 7 — ESTIMATED INITIAL INVESTMENT (FDD pages 16–19)
What This Means (2025 FDD)
According to Aw's 2025 Franchise Disclosure Document, franchisees must spend a minimum of $15,000 on a grand opening advertising campaign during the first 90 days of operation. Aw requires franchisees to follow their guidelines for grand opening advertising, marketing, and promotional programs and get prior approval of advertising used. Aw may also require franchisees to use designated suppliers for grand opening advertising.
This means that while franchisees have some control over their grand opening advertising campaign, Aw retains significant oversight. Franchisees must adhere to Aw's guidelines and obtain approval for all advertising materials. More importantly, Aw has the right to mandate the use of specific suppliers for these advertising efforts.
The estimated initial investment for grand opening advertising is between $15,000 and $30,000, payable to suppliers during the 90 days after opening. This requirement to use designated suppliers could impact the franchisee's costs and potentially limit their choice of vendors, so it's important to understand the implications and available options.