What specific financial statements must an Aw franchisee provide to Aw?
Aw Franchise · 2025 FDDAnswer from 2025 FDD Document
- 13.2 Reporting.
You agree to furnish us in the form and in the manner we prescribe from time to time: (1) by Tuesday of each week a report of the Gross Sale of the Papa Ray's Pizza Restaurant for the preceding Monday through Sunday; (2) within ten (10) days of the end of each month, a profit and loss statement for the preceding calendar month and a year to date profit and loss statement and balance sheet; (3) within seventy-five (75) days after the end of your fiscal year, a fiscal year-end balance sheet and an annual profit and loss statement for that fiscal year, reflecting all year-end adjustments; (4) within ten (10) days of the end of each calendar quarter, exact copies of all sales tax returns; and (5) on or before April 25 of each year, exact copies of such portions of your and your Owners' state and federal income tax return as reflect the operation of your Papa Ray's Pizza Restaurant.
We reserve the right to require you to have your financial statements prepared by an independent certified public accountant on an annual basis and signed by you.
You agree to furnish to us copies of any other reports, information or supporting records as we from time to time prescribe in the manner we prescribe.
Such reporting shall not include any records for information relating to your employees, as you exclusively control your labor relations and employment practices.
- 13.3 Our Right to Audit.
We have the right at any time during business hours, and without advance notice to you, to inspect and audit, or cause to be inspected and audited, the business records, bookkeeping and accounting records, sales and income tax records and returns and other records of the Papa Ray's Pizza Restaurant and the books and records of any entity which is the franchisee hereunder.
For purposes of this inspection and audit, records and reports exclude your employment records for your employees.
You agree to fully cooperate with our representatives and independent accountants we may hire to conduct any inspection or audit.
Source: Item 22 — CONTRACTS (FDD pages 39–40)
What This Means (2025 FDD)
According to Aw's 2025 Franchise Disclosure Document, franchisees are required to furnish several financial reports to Aw on a regular basis. Specifically, by Tuesday of each week, franchisees must submit a report of the Gross Sales of the Papa Ray's Pizza Restaurant for the preceding Monday through Sunday. Additionally, within ten days of each month's end, a profit and loss statement for the preceding month, along with a year-to-date profit and loss statement and balance sheet, must be provided.
Within 75 days after the end of the franchisee's fiscal year, Aw requires a fiscal year-end balance sheet and an annual profit and loss statement, inclusive of all year-end adjustments. Franchisees must also furnish exact copies of all sales tax returns within ten days of the end of each calendar quarter. Furthermore, on or before April 25 of each year, franchisees must provide exact copies of such portions of their and their Owners' state and federal income tax returns that reflect the operation of their Aw restaurant.
Aw retains the right to demand that these financial statements be prepared by an independent certified public accountant annually, with the statements signed by the franchisee. Franchisees must also supply any other reports, information, or supporting records as Aw may prescribe from time to time. However, these reporting requirements do not extend to records or information related to the franchisee's employees, as the franchisee maintains exclusive control over their labor relations and employment practices. Aw also has the right to inspect and audit the business records of the Aw restaurant.