What factors influence the cost of leasehold improvements for an Aw franchise?
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 cost of leasehold improvements for a Papa Ray's Pizza Restaurant can vary significantly based on several factors. The FDD estimates that leasehold improvements can range from $30,000 to $60,000. These improvements are necessary to conform the premises to Aw's specifications.
The primary factors influencing these costs include the size, condition, and configuration of the premises. Geographical location also plays a role, as does local zoning and building ordinances. Furthermore, labor and material costs, along with other economic factors, can impact the overall expense. The estimate includes the cost of an architect, if one is needed, as well as contractors, building materials, and decorating supplies.
To potentially reduce these costs, Aw suggests trying to negotiate with the landlord to cover some of the expenses related to leasehold improvements. Another strategy is to lease a site that was previously used as a restaurant, as it may already have suitable configurations that require limited renovations. Aw highly recommends securing a site already configured for a restaurant and containing existing kitchen fixtures and equipment. The high end of the estimate assumes the leased space is a vanilla box, meaning it requires full build-out.