What does the estimate for leasehold improvements for Aw include?
Aw Franchise · 2025 FDDAnswer from 2025 FDD Document
You must make certain leasehold improvements at the premises of Papa Ray's Pizza Restaurant according to our plans and specifications.
The cost of the improvements vary greatly depending upon the size, condition, configuration, and geographical location of the premises, local zoning and building ordinances, labor and material costs, and other economic factors.
This estimate includes the cost of an architect, if necessary, and contractors and building and decorating materials and supplies.
Your expense will be less if you can arrange for the landlord to cover some of the costs of leasehold improvements or if you can lease a site previously used for a restaurant facility and can suitably configure the site with limited renovations.
We highly recommend trying to secure a site that already is configured for a restaurant and that contains some existing kitchen fixtures and equipment.
The high estimate assumes that the leased space is a vanilla box.
Source: Item 7 — ESTIMATED INITIAL INVESTMENT (FDD pages 16–19)
What This Means (2025 FDD)
According to Aw's 2025 Franchise Disclosure Document, the estimated cost for leasehold improvements ranges from $30,000 to $60,000. This estimate covers the expenses associated with modifying the premises of the Aw restaurant to meet Aw's specifications. These costs can fluctuate significantly based on factors such as the size, condition, configuration, and geographical location of the property, as well as local zoning and building ordinances, and the costs of labor and materials.
The estimate includes the costs of an architect, if one is needed, as well as contractors, building materials, and decorating supplies. The FDD notes that franchisees may be able to reduce these expenses if they can negotiate with the landlord to cover some of the leasehold improvement costs or if they lease a site that was previously used as a restaurant and requires only limited renovations. Aw highly recommends securing a site already configured for a restaurant with existing kitchen fixtures and equipment to minimize these costs.
The high end of the estimate assumes the leased space is a vanilla box, meaning it requires complete build-out. Prospective Aw franchisees should carefully consider these factors and seek to secure favorable lease terms and site conditions to manage their initial investment effectively. It is important to note that these are estimates and the actual costs may vary.