Is it required to submit a weekly report of Gross Sales to Aw?
Aw Franchise · 2025 FDDAnswer from 2025 FDD Document
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- The term "Gross Sales" means the amount of all receipts from the sale of any and all food beverages, merchandise or other products or services made and rendered in, on or from the premises of the Papa Ray's Pizza Restaurant, or through any other means, including sales outside of the Premises, that is in any way related to your Papa Ray's Pizza Restaurant, whether for cash, exchange or credit (and regardless of collection in the case of credit). Gross Sales will be deemed received on the date that payment in whatever form is actually collected and received by you. The term Gross Sales does 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 promotion or charitable purposes. You must submit a weekly report of Gross Sales to us.
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- You must pay the royalty fee, advertising contribution and any other amounts you owe to us or our affiliate by electronic transfer of funds.
Source: Item 6 — OTHER FEES (FDD pages 13–16)
What This Means (2025 FDD)
According to Aw's 2025 Franchise Disclosure Document, franchisees are required to submit a weekly report of Gross Sales. The FDD specifies that "Gross Sales" includes all receipts from sales of food, beverages, merchandise, and other products or services from the Papa Ray's Pizza Restaurant, including sales outside the premises related to the restaurant, regardless of whether the payment is in cash, exchange, or credit. Gross Sales are considered received on the date payment is actually collected.
However, the definition of Gross Sales excludes 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 promotion or charitable purposes.
This weekly reporting requirement ensures that Aw can accurately calculate royalty fees, advertising contributions, and any other amounts owed by the franchisee. These payments are to be made via electronic transfer of funds. Failure to submit these reports or underreporting Gross Sales by more than 2% can lead to audits and associated costs for the franchisee.