Is Aw required to approve all local advertising expenditures made by the franchisee?
Aw Franchise · 2025 FDDAnswer from 2025 FDD Document
development of advertising, marketing and promotional materials or the placement of advertising. Except as expressly provided in this Paragraph 12.1, we assume no direct or indirect liability or obligation to you with respect to the maintenance, direction, or administration of the Marketing Fund.
- 12.2 Local Advertising. Once you have completed the grand opening advertising campaign during the first three (3) months of operation of your Papa Ray's Pizza Restaurant, in addition to the requirement for you to contribute to the Marketing Fund, you must spend on local advertising, marketing and promotion a minimum of Three Thousand Eight Hundred Dollars ($3,800.00) per month throughout the term of this Agreement. Such expenditures will be made directly by you, subject to our approval and direction. We may require that you use suppliers designated by us for certain types of local advertising, marketing and promotion. Within thirty (30) days of the end of each calendar quarter, you must furnish to us in a manner approved by us an accurate accounting of your monthly local advertising and marketing expenditures for the previous calendar quarter.
- 12.3 Advertising Approval. Prior to your use of them, samples of all local advertising, marketing and promotional materials not prepared or previously approved by us, and all proposed content for any I
Source: Item 22 — CONTRACTS (FDD pages 39–40)
What This Means (2025 FDD)
According to Aw's 2025 Franchise Disclosure Document, franchisees are required to obtain approval and direction from Aw regarding local advertising expenditures. After the initial three-month grand opening, franchisees must spend a minimum of $3,800 per month on local advertising, marketing, and promotion. These expenditures are subject to Aw's approval and direction.
Aw may require franchisees to use designated suppliers for certain types of local advertising, marketing, and promotion. Franchisees must submit samples of all local advertising, marketing, and promotional materials not prepared or previously approved by Aw, including content for internet or social media advertising, for approval before use. If written approval is not received within 30 days from the date Aw receives the materials, the materials will be deemed disapproved, and the franchisee cannot use them.
This approval process ensures that all advertising aligns with Aw's brand standards and marketing strategies. Franchisees must also furnish an accurate accounting of their monthly local advertising and marketing expenditures for the previous calendar quarter within 30 days of the end of each calendar quarter. This allows Aw to monitor compliance with the local advertising spending requirement and maintain control over brand messaging and presentation.