What is the specific dollar amount of the Minimum Annual Gross Revenue that an Aw franchisee must achieve?
Aw Franchise · 2025 FDDAnswer from 2025 FDD Document
resale, retail sale or further distribution by such third party. You shall not sell any products offered for sale through the Papa Ray's Pizza Restaurant through any Alternative Distribution Channels.
- 2.7 Minimum Annual Gross Revenue. Beginning with the second year of operation of the Papa Ray's Pizza Restaurant, you must have annual Gross Revenue for each year of operation of a minimum of Three Hundred Thousand Dollars ($300,000.00) ("Minimum Annual Gross Revenue"). If you do not achieve the Minimum Annual Gross Revenue for any year of operation,
you will be given the next twelve (12) months to increase revenues so that you meet the Minimum Annual Gross Revenue. If you do not meet the Minimum Annual Gross Revenue after having been given a twelve (12) month period to increase sales and achieve the Minimum Annual Gross Revenue, we may either (i) increase the amount that you must expend on local advertising pursuant to Paragraph 12.2 herein to an amount we in our discretion deem necessary in order to increase revenues, (ii) reduce or eliminate your Protected Area upon de
Source: Item 22 — CONTRACTS (FDD pages 39–40)
What This Means (2025 FDD)
According to Aw's 2025 Franchise Disclosure Document, beginning in the second year of operation, a franchisee must achieve a minimum annual gross revenue of $300,000. This benchmark is referred to as the "Minimum Annual Gross Revenue." If an Aw franchisee fails to meet this revenue target, they will be given a 12-month period to improve their sales performance.
If, after the 12-month grace period, the franchisee still does not reach the $300,000 Minimum Annual Gross Revenue, Aw has the right to take corrective actions. These actions can include increasing the franchisee's required local advertising expenditure to an amount Aw deems necessary to boost revenue. Alternatively, Aw may reduce or eliminate the franchisee's protected area, potentially allowing Aw to establish another Aw location in the previously protected territory. In the most severe case, Aw reserves the right to terminate the franchise agreement altogether.
This requirement highlights the importance of strong sales and marketing efforts for Aw franchisees. The potential consequences of failing to meet the Minimum Annual Gross Revenue underscore the need for franchisees to have a solid business plan and effective operational strategies. Prospective franchisees should carefully consider their ability to meet this revenue target and the potential impact of the corrective actions Aw may take if the target is not met.