What is the amount of the standard transfer fee for an Aw franchise assignment?
Aw Franchise · 2025 FDDAnswer from 2025 FDD Document
in the grant of franchises for a Papa Ray's Pizza Restaurant, which may provide for royalty fees, marketing fund contributions and other fees and terms and conditions that differ from those contained in this Agreement; or (b) an assignment and assumption agree
Source: Item 22 — CONTRACTS (FDD pages 39–40)
What This Means (2025 FDD)
According to Aw's 2025 Franchise Disclosure Document, a franchisee who transfers their franchise must pay a transfer fee. The standard transfer fee for an Aw franchise is Nine Thousand Dollars ($9,000.00). However, if the assignee is an existing Aw franchisee that Aw has approved for an additional franchise, the transfer fee is reduced to Five Thousand Dollars ($5,000.00).
This means that if you decide to sell your Aw franchise to a new owner, either you or the new owner will need to pay Aw a transfer fee of $9,000. This fee covers Aw's costs associated with approving the transfer and ensuring the new owner is properly trained. However, if you sell your franchise to someone who already owns an Aw franchise, the transfer fee is lower, at $5,000.
It is important to note that the transfer is subject to several conditions. Aw must approve the assignee, and the assignee must meet Aw's standards for franchisees. All outstanding payments to Aw must be settled, and the assignee must complete the initial training program. The premises' lessor must also consent to the assignment or sublease. The assignee must also agree to be bound by Aw's current franchise agreement terms, which may differ from the original agreement.
These conditions and fees are typical in franchising, as they allow Aw to maintain control over its brand and ensure that new franchisees are qualified and capable of running the business successfully. Franchisees should carefully consider these costs and conditions when planning to sell their franchise.