Does Aw specify how market research participation affects franchise operations?
Aw Franchise · 2025 FDDAnswer from 2025 FDD Document
We will direct all advertising, marketing and promotional programs financed by the Marketing Fund, with sole discretion over the creative concepts, materials, and endorsements used in them, and the geographic, market, and media placement and allocation of the programs. You agree that the Marketing Fund may be used to pay the cost of preparing and producing video, audio and written advertising materials; administering national, regional or local advertising programs including, direct mail and other media advertising, and employing advertising agencies to assist in those activities; developing and maintaining a website for the franchise system; supporting public relations, market research and marketing activities; and providing advertising, marketing and promotional materials to Papa Ray's Pizza franchisees.
Source: Item 16 — RESTRICTIONS ON WHAT THE FRANCHISEE MAY SELL (FDD pages 33–34)
What This Means (2025 FDD)
According to Aw's 2025 Franchise Disclosure Document, the franchisor may use the Marketing Fund to support market research activities. Specifically, Aw "will direct all advertising, marketing and promotional programs financed by the Marketing Fund, with sole discretion over the creative concepts, materials, and endorsements used in them, and the geographic, market, and media placement and allocation of the programs." The franchisor also states that the Marketing Fund may be used for "supporting public relations, market research and marketing activities".
This means that Aw has the discretion to allocate funds towards market research to better understand consumer preferences and market trends. This research can then inform advertising, marketing, and promotional strategies for the Papa Ray's Pizza Restaurants. While franchisees contribute 2% of Gross Sales to the Marketing Fund once it is established, Aw maintains control over how these funds are spent, including the decision to invest in market research.
While Aw does not specify how franchisee participation in market research would directly affect franchise operations, the results of such research could influence various aspects of the business. This includes adjustments to the menu, marketing campaigns, and overall customer service strategies. Franchisees may benefit from these insights through increased customer traffic and sales, as the business adapts to market demands. However, franchisees do not have direct control over the market research or how its findings are implemented, as Aw retains sole discretion.
Prospective franchisees should inquire with Aw about the extent to which franchisees are involved in market research initiatives. Understanding how Aw incorporates franchisee feedback and whether there are opportunities to contribute to the market research process can provide valuable insights into the collaborative nature of the franchise system.