Under what condition are Aw franchisees required to pay 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, franchisees may be required to pay software license fees under specific circumstances. The FDD indicates that these fees are "Payable if we develop proprietary software that you must use for operating your Papa Ray’s Pizza Restaurant." This means that if Aw develops software deemed necessary for running the pizza restaurant, franchisees will be obligated to pay a license fee to use it.
The exact amount of the software license fees is currently "Undetermined since proprietary software has not yet been developed." This lack of a defined cost makes it difficult for potential franchisees to fully assess the financial implications of this requirement. The due date for these fees is "As arranged," suggesting that the payment schedule will be determined at a later date, presumably when the software is developed and implemented.
Prospective Aw franchisees should inquire about the potential cost, functionality, and necessity of this software. Understanding the estimated cost and payment terms is crucial for accurate financial planning. Additionally, franchisees should clarify whether using the software is truly mandatory and what alternatives, if any, exist. This information will help franchisees make an informed decision about the franchise opportunity and prepare for potential future expenses.