What condition triggers the deferral of the initial franchise fee for Aw franchises in Illinois?

According to Aw's 2025 Franchise Disclosure Document, the deferral of the initial franchise fee in Illinois is triggered by Aw's financial condition. Specifically, the Office of the Illinois Attorney General requires Aw to defer all initial franchise fees until Aw has fulfilled all its initial obligations to the franchisee under the Franchise Agreement, and the franchisee has commenced business operations.

This requirement is imposed due to Aw's financial condition, providing a level of financial assurance to franchisees in Illinois. This means that a new Aw franchisee in Illinois will not have to pay the initial franchise fee upfront. Instead, the fee is deferred until Aw has met its obligations, such as providing training, site selection assistance, and other pre-opening support, and the franchisee has actually started operating their Aw franchise.

This deferral offers a significant benefit to franchisees as it reduces their initial financial burden and risk. It ensures that franchisees only pay the initial fee after Aw has delivered on its promises and the business is up and running. Prospective franchisees should carefully review the Franchise Agreement and any state-specific addenda to fully understand Aw's obligations and the conditions for payment of the initial franchise fee.