Are the fees outlined in the Aw Franchise Disclosure Document refundable?

According to Aw's 2025 Franchise Disclosure Document, the fees outlined in Item 6 are generally nonrefundable. The FDD states that unless otherwise noted, all fees are imposed by and payable to Aw, and all fees are nonrefundable. This means that once a franchisee pays a fee to Aw, they typically cannot get that money back, regardless of the circumstances.

This policy covers a variety of fees that Aw franchisees may encounter. These fees include a transfer fee of $9,000 (or $5,000 if the transferee is an existing franchisee), a $2,500 renewal fee, audit/inspection costs, service charges, management fees (currently $250 per day plus expenses), a $250 fee for supplier approval, and a relocation fee of $500 plus travel expenses. Franchisees are also responsible for costs and attorney's fees, reimbursement for insurance costs, reimbursement of taxes, and software license fees.

The nonrefundable nature of these fees is a standard practice in franchising. It is important for prospective Aw franchisees to carefully consider their financial situation and business plan before committing to any fees, as they will likely not be able to recover these costs if they change their mind or if their business does not perform as expected. Franchisees should factor these nonrefundable fees into their overall investment and operating budget.

While the FDD states that the fees are uniformly imposed, it also notes that some existing franchisees may have different payment obligations. This suggests that Aw may have made exceptions or negotiated different terms with some franchisees in the past. A prospective franchisee should inquire about the specific fee structure applicable to their franchise agreement and whether there are any circumstances under which fees may be refundable, despite the general policy.