What is the estimated range for lease security deposit and rent (first 3 months) for an Aw franchise?
Aw Franchise · 2025 FDDAnswer from 2025 FDD Document
| Type of Expenditure | Amount- Range Estimated | Method of Payment | When Payable | To Whom Payment is Made |
|---|---|---|---|---|
| Lease Security Deposit and Rent (1st 3 months) (Note 3) | $4,000 - $16,000 | As arranged | As arranged | Lessor |
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- Lease Security Deposit; Rent. This estimate covers the security deposit and rent for the first 3 months for leasing a site ranging in size from 900 to 2,500 square feet.
Typically the security deposit for the lease is one month's rent.
The rent will vary depending on the size, type, condition and location of the premises.
The low estimate assumes that you will be able to negotiate some free rent at the beginning of the lease.
The estimate does not include purchasing a site which we would not recommend.
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 initial investment for lease security deposit and rent for the first three months ranges from $4,000 to $16,000. This cost covers leasing a site ranging from 900 to 2,500 square feet. The security deposit is typically equivalent to one month's rent.
The actual rent amount can vary significantly based on factors such as the size, type, condition, and location of the premises. The lower end of the estimate assumes that a franchisee can negotiate some rent-free period at the beginning of the lease term, which would reduce the upfront costs. Aw does not recommend purchasing a site.
Prospective franchisees should carefully consider these factors and conduct thorough market research to estimate potential rental costs in their desired location. Negotiating favorable lease terms, such as a rent-free period or tenant improvement allowances, can significantly impact the initial investment required. It is important to note that these figures are estimates, and actual costs may vary.