What is the trigger for Aw to charge software license fees?
Aw Franchise · 2025 FDDAnswer from 2025 FDD Document
| TYPE OF FEE1,3 | AMOUNT | DUE DATE | REMARKS |
|---|---|---|---|
| omissions, our enforcement of this Agreement, our defense of our actions taken under this Agreement or your breach of the Franchise Agreement. | |||
| Costs and Attorney's Fees | Will vary under circumstances | As incurred | You must reimburse us for costs and attorney's fees we incur in actions against you to enforce the Franchise Agreement. |
| Reimbursement for insurance costs | Costs and premiums incurred by us on your behalf. | Upon demand | Payable if we incur costs to purchase insurance for you if you fail to do so. |
| Reimbursement of Taxes | Actual assessed taxes against us for your operation of your business or on any payments you make to us. | Upon demand | Only payable if taxes of this type are assessed against us. |
| Software license fees | Undetermined since proprietary software has not yet been developed. | As arranged | Payable if we develop proprietary software that you must use for operating your Papa Ray’s Pizza Restaurant. |
Source: Item 6 — OTHER FEES (FDD pages 13–16)
What This Means (2025 FDD)
According to Aw's 2025 Franchise Disclosure Document, software license fees become payable if Aw develops proprietary software that franchisees must use to operate their Papa Ray’s Pizza Restaurant. The exact amount of these fees is currently undetermined, as the proprietary software has not yet been developed. The due date for these fees will be arranged at a later time.
This means that as a prospective Aw franchisee, you may be required to pay additional fees in the future for software that Aw deems necessary for running your pizza restaurant. Since the amount is undetermined, it's difficult to factor this into your initial financial planning. It is important to note that the fees are only applicable if Aw develops the software and mandates its use.
Franchisors commonly implement software systems to maintain brand consistency and operational efficiency across all locations. These systems often cover point-of-sale, inventory management, and customer relationship management. While the FDD indicates that the fee is undetermined, it is important for prospective franchisees to inquire about the potential cost, functionality, and implementation timeline of any future software to better understand the financial implications and operational requirements. It would be prudent to discuss with existing franchisees their experience with similar software implementations and associated costs.