What factors cause the insurance premiums to vary for an Aw franchise?
Aw Franchise · 2025 FDDAnswer from 2025 FDD Document
s, uniforms and other supplies.
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- Insurance. You must purchase and maintain insurance coverage in minimum amounts we require. The required insurance is described in Item 8 of this Disclosure Document and in the Franchise Agreement. The premiums that franchisees will be charged will vary from market to market. The low estimate is for a minimum initial payment and the high estimate is for payment in full of the annual premium.
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- Miscellaneous Pre-Opening Expenses. This estimate includes the cost of building permits, business licenses, food certifications and legal and accounting fees.
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Source: Item 7 — ESTIMATED INITIAL INVESTMENT (FDD pages 16–19)
What This Means (2025 FDD)
According to Aw's 2025 Franchise Disclosure Document, the insurance premiums for franchisees can vary from market to market. The estimated initial investment for insurance ranges from $900 to $16,000, payable as incurred and arranged with the insurance company. The low estimate covers a minimum initial payment, while the high estimate accounts for full payment of the annual premium.
This means that the location of the Aw franchise significantly impacts insurance costs. Markets with higher risks or more stringent insurance requirements will likely result in higher premiums. Additionally, the payment plan chosen by the franchisee affects the initial outlay, with the option to pay the full annual premium upfront leading to a higher initial investment.
Prospective franchisees should research insurance costs in their target market to get a more accurate estimate. They should also inquire about the specific insurance coverage required by Aw, as detailed in Item 8 of the Disclosure Document and the Franchise Agreement, to understand the factors driving these costs. Understanding these variables will help franchisees budget appropriately and make informed decisions about their insurance coverage.