What is the estimated range for leasehold improvements 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 |
|---|---|---|---|---|
| Leasehold Improvements | $30,000 - | As incurred | As agreed | Contractors |
| (Note 4) | $60,000 |
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. These improvements are necessary to customize the restaurant premises to meet Aw's specifications. The costs can fluctuate significantly based on several factors, including the size, condition, and configuration of the location, its geographical location, local zoning and building ordinances, and the costs of labor and materials.
The estimate includes expenses for an architect, if needed, as well as contractors, building materials, and decorating supplies. A prospective Aw franchisee may be able to lower these costs by negotiating with the landlord to cover some of the expenses or by leasing a site that was previously used as a restaurant, which may require fewer renovations. Aw highly recommends securing a site already configured for a restaurant with existing kitchen fixtures and equipment to minimize these expenses.
The higher end of the estimate assumes the leased space is a vanilla box, meaning it requires significant work to meet Aw's standards. Therefore, franchisees should carefully evaluate potential locations and consider the cost of improvements when making their decision. Understanding these potential costs is crucial for budgeting and financial planning when opening an Aw franchise.