Is the royalty fee refundable under any circumstances for an Aw franchise?

According to Aw's 2025 Franchise Disclosure Document, the royalty fee is explicitly non-refundable under any circumstances. The franchisee is obligated to pay a weekly royalty fee, which is 5% of the Gross Revenue of the Papa Ray's Pizza Restaurant. This fee is payable every Wednesday, covering the period from the previous Monday through Sunday, via electronic transfer.

This non-refundable policy means that once the royalty fee is paid, it cannot be recovered, regardless of any issues or disputes that may arise during the operation of the franchise. This is a significant financial consideration for prospective franchisees, as it underscores the importance of carefully managing revenue and expenses to ensure timely royalty payments. Franchisees should be aware that even if the restaurant experiences a downturn or faces unexpected costs, the royalty fee remains due and is not subject to refund.

In the franchise industry, royalty fees are a standard component of the franchise agreement, compensating the franchisor for the use of their brand, systems, and ongoing support. While the non-refundable nature of royalty fees is not uncommon, prospective franchisees should fully understand this policy and its implications before entering into a franchise agreement with Aw. It is advisable to seek legal and financial counsel to assess the potential risks and rewards associated with this commitment.