How must the royalty fee be paid for an Aw franchise?

According to Aw's 2025 Franchise Disclosure Document, the royalty fee, which is five percent (5%) of the Gross Revenue of the Papa Ray's Pizza Restaurant, must be paid weekly via electronic transfer. The payment is due on Wednesday of each week and covers the period from the previous Monday through Sunday.

Aw requires franchisees to execute authorization forms for electronic transfer or debiting as soon as they establish a bank account for their Papa Ray's Pizza Restaurant. Franchisees must also obtain Aw's prior written approval before making any changes to their banking relationships, including changes to the account number or bank. On Tuesday of each week, franchisees must submit a statement of Gross Revenue for the previous Monday through Sunday in the specified form and manner. 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.

If a franchisee fails to submit a report of Gross Revenue, Aw may transfer or debit an amount equal to one hundred twenty percent (120%) of the last amount transferred for payment of the royalty and Marketing Fund contribution. If the amount transferred is less than what is actually owed, Aw will transfer the balance due or credit the excess against the next transfer. This ensures that Aw receives the correct royalty and marketing fund contributions in a timely manner.

This electronic payment system is a fairly standard practice in franchising, as it provides efficiency and transparency in financial transactions between the franchisee and the franchisor. Franchisees should ensure they have sufficient funds available in their account to cover the weekly royalty and marketing fund contribution to avoid any penalties or disruptions.