What is the estimated range for additional funds needed during the first 3 months of operating an Aw franchise?
Aw Franchise · 2025 FDDAnswer from 2025 FDD Document
| Additional Funds (1st 3 | $40,000 - | As incurred | As incurred | You determine | | months) (Note 11) | $80,000 | | | |
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- Additional Funds. This item estimates your expenses for the first 3 months of operation. It includes payroll costs (but not a draw for you), utilities, inventory purchases and other operating costs, and royalty and marketing fund payments to us. We have not included any amount in the estimates for a vehicle since delivery drivers use their own vehicles.
These figures are estimates and we cannot guarantee that you will not have additional expenses in the initial operation of your Papa Ray's Pizza Restaurant. Your costs will depend on factors such as how closely you follow our methods and procedures, your management skill, experience and business sense, local economic conditions, the local market for your products and services, competition, and the sales level reached during the initial period of operations.
Source: Item 7 — ESTIMATED INITIAL INVESTMENT (FDD pages 16–19)
What This Means (2025 FDD)
According to Aw's 2025 Franchise Disclosure Document, a new franchisee should budget between $40,000 and $80,000 for additional funds during the initial 3 months of operation. These funds are intended to cover expenses such as payroll costs (excluding the franchisee's draw), utilities, inventory purchases, operating costs, and royalty and marketing fund payments to Aw. The FDD clarifies that these figures do not include any allocation for a vehicle, as delivery drivers are expected to use their own vehicles.
The FDD emphasizes that these figures are estimates, and actual expenses may vary. A franchisee's costs will depend on factors such as adherence to Aw's methods and procedures, management skills, local economic conditions, market demand, competition, and sales levels achieved during the initial operating period. Prospective franchisees should carefully review these estimates with a business advisor before making a decision.
Aw does not offer direct or indirect financing for any part of the initial investment. The availability and terms of financing from third-party lenders will depend on factors such as the franchisee's creditworthiness, available collateral, and the lending policies of financial institutions. It is important for potential franchisees to secure adequate capital to cover these initial operating expenses to ensure a stable start for their Aw franchise.