According to Aw's FDD, are payments to the franchisor refundable?

According to Aw's 2025 Franchise Disclosure Document, payments made to Aw are non-refundable. However, payments to third-party suppliers are potentially refundable, but this depends on whether the franchisee can directly negotiate a refund agreement with the supplier. This is detailed in the explanatory notes for the estimated initial investment.

This non-refundable policy for payments to Aw means that franchisees should carefully consider their decision before making any payments, particularly the initial franchise fee. The initial franchise fee is paid in two installments: half when signing the Franchise Agreement and the other half within 5 days of Aw approving the restaurant site. Given that a significant portion of the initial investment is non-refundable, prospective franchisees should conduct thorough due diligence and seek professional advice before committing to the franchise.

In the franchise industry, it is common for initial franchise fees to be non-refundable, as these fees cover the franchisor's costs associated with granting the franchise and providing initial training and support. However, the ability to negotiate refunds with third-party suppliers can offer some financial flexibility to the franchisee. Therefore, it is crucial for potential Aw franchisees to understand the terms and conditions of all agreements with suppliers and to attempt to negotiate favorable refund policies where possible.