What specific tax documents must an Aw franchisee retain copies of?

According to Aw's 2025 Franchise Disclosure Document, franchisees must maintain copies of sales tax returns and portions of their and their owners' state and federal income tax returns that reflect the operation of their Papa Ray's Pizza Restaurant. These records must be kept at the premises for a minimum of five years from the date of preparation.

This requirement ensures that Aw franchisees maintain accurate financial records for potential audits and to comply with reporting obligations to the franchisor. By keeping these documents for at least five years, franchisees can readily provide necessary information during audits or for other compliance purposes. This also aligns with standard accounting practices, as businesses typically retain tax-related documents for several years to address potential audits or inquiries from tax authorities.

The FDD also states that Aw has the right to inspect and audit the franchisee's business records, bookkeeping, accounting records, sales and income tax records and returns, and other records of the Papa Ray's Pizza Restaurant. Franchisees are expected to fully cooperate with Aw's representatives and independent accountants during any inspection or audit. However, the FDD specifies that these inspections and audits exclude employment records for the franchisee's employees, as the franchisee exclusively controls their labor relations and employment practices.

Overall, these requirements emphasize the importance of accurate record-keeping and financial transparency for Aw franchisees. Franchisees should establish and maintain a bookkeeping, accounting, and recordkeeping system that conforms to generally accepted accounting principles and the standards prescribed by Aw to ensure compliance with these obligations.