How must royalty fees be paid to Aw?
Aw Franchise · 2025 FDDAnswer from 2025 FDD Document
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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.
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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.
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 pay royalty fees, advertising contributions, and any other amounts owed to Aw or its affiliates through electronic transfer of funds. This requirement ensures that payments are made in a timely and secure manner.
Franchisees must also submit a weekly report of Gross Sales to Aw. Gross Sales include all receipts from the sale of food, beverages, merchandise, or services from the Papa Ray's Pizza Restaurant, including sales outside the premises related to the restaurant, whether for cash, exchange, or credit. Gross Sales are considered received when payment is actually collected.
However, Gross Sales do not include 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 definition is important for franchisees to accurately calculate and report their Gross Sales, which directly impacts the royalty fees and advertising contributions they owe to Aw.