Under what circumstances is the management fee payable to Aw?

Question

Accepted Answer

| TYPE OF FEE1,3 | AMOUNT | DUE DATE | REMARKS |
|---|---|---|---|
|  | conference. |  | conference, and if you fail to do so, the conference fee must still be paid to us. You are responsible for your travel expenses. |
| Transfer Fee | $9,000 or $5,000 if the transferee is an existing franchisee approved by us for additional franchises. | Before transfer | Payable when you transfer the franchise, an interest in Papa Ray’s Pizza Restaurant, the assets of Papa Ray’s Pizza Restaurant or an interest in the franchisee; no fee if the transfer is to a corporation owned by you. |
| Renewal Fee | $2,500 | When you sign renewal agreement | Payable if you renew your franchise at the end of the initial term. |
| Audit/Inspection Costs | Cost of audit or inspection, including charges of professional advisors, and travel expenses, room and board and compensation or fees of our employees or agents | Upon billing | Payable if audit necessary because of your failure to file reports, supporting records, financial statements, or other required information in a timely fashion or if any audit reveals an understatement of the reported Gross Sales of greater than 2%. |
| Service Charge | Greater of $150 or the highest interest rate allowed by law not to exceed 1 ½%. | Upon billing | Payable on all overdue accounts due to us. |
| Management Fee | Currently $250 per day, plus expenses; subject to increase | As agreed | Payable to us during period that our appointed manager manages Papa Ray’s Pizza Restaurant, at our option, after 14 days from your receipt of a default notice or 30 days following your death or disability. |

Source: Item 6 — OTHER FEES (FDD pages 13–16)

Under what circumstances is the management fee payable to Aw?

Answer from 2025 FDD Document

What This Means (2025 FDD)

TYPE OF FEE1,3	AMOUNT	DUE DATE	REMARKS
	conference.		conference, and if you fail to do so, the conference fee must still be paid to us. You are responsible for your travel expenses.
Transfer Fee	$9,000 or $5,000 if the transferee is an existing franchisee approved by us for additional franchises.	Before transfer	Payable when you transfer the franchise, an interest in Papa Ray’s Pizza Restaurant, the assets of Papa Ray’s Pizza Restaurant or an interest in the franchisee; no fee if the transfer is to a corporation owned by you.
Renewal Fee	$2,500	When you sign renewal agreement	Payable if you renew your franchise at the end of the initial term.
Audit/Inspection Costs	Cost of audit or inspection, including charges of professional advisors, and travel expenses, room and board and compensation or fees of our employees or agents	Upon billing	Payable if audit necessary because of your failure to file reports, supporting records, financial statements, or other required information in a timely fashion or if any audit reveals an understatement of the reported Gross Sales of greater than 2%.
Service Charge	Greater of $150 or the highest interest rate allowed by law not to exceed 1 ½%.	Upon billing	Payable on all overdue accounts due to us.
Management Fee	Currently $250 per day, plus expenses; subject to increase	As agreed	Payable to us during period that our appointed manager manages Papa Ray’s Pizza Restaurant, at our option, after 14 days from your receipt of a default notice or 30 days following your death or disability.