Is the discounted initial franchise fee for an Aw franchise refundable?
Aw Franchise · 2025 FDDAnswer from 2025 FDD Document
ITIAL FEES**
You must pay an initial franchise fee of $30,000. It is due and payable in a lump sum by certified or cashier's check upon signing the Franchise Agreement. The franchise fee is not refundable under any circumstances.
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, the discounted initial franchise fee is not refundable. The standard initial franchise fee is $30,000, but Aw offers a discounted fee of $15,000 to certain franchisees. These include 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 FDD clearly states that the $15,000 discounted initial franchise fee is non-refundable and must be paid in cash when the franchise agreement is signed. This means that once the agreement is signed and the fee is paid, the franchisee cannot get a refund under any circumstances, regardless of whether they proceed with opening the franchise.
This non-refundable policy is a standard practice in franchising, as it compensates Aw for the expenses incurred in evaluating and approving the franchisee, providing initial training and support, and foregoing other potential franchise opportunities in the same territory. Prospective Aw franchisees should carefully consider this non-refundable aspect before signing the franchise agreement and paying the initial fee.