How must the discounted initial franchise fee for an Aw franchise be paid?
Aw Franchise · 2025 FDDAnswer from 2025 FDD Document
cumstances.
The following franchisees will pay a discounted initial franchise fee of $15,000:
- (1) an existing Papa Ray's Pizza Restaurant franchisee currently operating a Papa Ray's Pizza Restaurant in compliance with the franchise agreement;
- (2) a honorably discharged Veteran;
- (3) a current or past employee of ours, an affiliate or one of our franchisees who was so employed for a minimum of one year.
The $15,000 non-refundable initial franchise fee must be paid in cash in full when the franchise agreemen
Source: Item 5 — INITIAL FEES (FDD pages 12–13)
What This Means (2025 FDD)
According to Aw's 2025 Franchise Disclosure Document, certain franchisees are eligible for a discounted initial franchise fee of $15,000. This discount applies to existing Papa Ray's Pizza Restaurant franchisees in good standing, honorably discharged veterans, and current or past employees of Aw, its affiliates, or its franchisees who have been employed for at least one year.
The discounted initial franchise fee of $15,000 must be paid in cash in full when the franchise agreement is signed. This contrasts with the standard initial franchise fee payment terms, where only $15,000 is due upon signing the agreement and the remaining $15,000 is due within five days of site approval.
This requirement to pay the discounted fee in full at signing could impact a franchisee's initial cash flow planning. While the overall fee is lower, the immediate outlay is higher compared to the standard payment schedule. Prospective franchisees should ensure they have the necessary funds available at the time of signing the agreement.