Under what conditions is reimbursement of taxes payable to Aw?
Aw Franchise · 2025 FDDAnswer from 2025 FDD Document
| TYPE OF FEE1,3 | AMOUNT | DUE DATE | REMARKS |
|---|---|---|---|
| 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. |
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 reimburse Aw for taxes under specific circumstances. If taxes are assessed against Aw due to the franchisee's operation of the business or on any payments the franchisee makes to Aw, the franchisee is responsible for reimbursing Aw for the actual taxes assessed. This reimbursement is payable upon demand from Aw.
This means that if a taxing authority determines that Aw owes taxes as a direct result of how a franchisee is running their Papa Ray's Pizza Restaurant or because of payments made by the franchisee to Aw, the franchisee will have to cover those tax expenses. This could arise from a variety of situations, such as errors in tax reporting by the franchisee or changes in tax laws that affect payments made to Aw.
It is important for prospective Aw franchisees to understand this potential financial obligation, as it could add unexpected costs to their business operations. Franchisees should maintain accurate records and seek professional tax advice to ensure compliance with all applicable tax laws and regulations, thereby minimizing the risk of triggering such a reimbursement obligation. Franchisees should also clarify with Aw what types of taxes this reimbursement provision covers to fully understand their responsibilities.