When is the first half of the initial franchise fee for an Aw franchise due?
Aw Franchise · 2025 FDDAnswer from 2025 FDD Document
ITIAL INVESTMENT**
| Type of Expenditure | Amount- Range Estimated | Method of Payment | When Payable | To Whom Payment is Made |
|---|---|---|---|---|
| Initial Franchise Fee (Note 1) | $30,000 | 2 lump sum payments | ½ when you sign the franchise agreement; and ½ when we approve your location | Us |
| Travel and Living Costs while Training (Note 2) | $2,000 - $10,000 | As arranged | As agreed | Transportation lines, hotels, restaurants |
| Lease Security Deposit and Rent (1st 3 months) (Note 3) | $4,000 - $16,000 | As arranged | As arranged | Lessor |
| Leasehold Improvements | $30,000 - |
Source: Item 7 — ESTIMATED INITIAL INVESTMENT (FDD pages 16–19)
What This Means (2025 FDD)
According to Aw's 2025 Franchise Disclosure Document, one-half of the initial franchise fee, which totals $30,000, is due when you sign the Franchise Agreement. The remaining balance is due within 5 days of Aw approving the site for your Papa Ray's Pizza Restaurant. This initial franchise fee is just one component of the total estimated initial investment, which ranges from $213,730 to $464,080. These payments are made directly to Aw.
This upfront payment is non-refundable, so prospective Aw franchisees should carefully consider their decision before signing the Franchise Agreement. It's common practice in franchising to require an initial franchise fee to grant the franchisee the right to use the franchisor's brand, system, and intellectual property. The initial franchise fee contributes to the overall initial investment, which covers various expenses such as leasehold improvements, equipment, inventory, and working capital.
Understanding the payment schedule and non-refundable nature of the initial franchise fee is crucial for budgeting and financial planning. Franchisees should also be aware of the other costs involved in starting an Aw franchise, such as travel and living costs during training, lease security deposits, rent, and grand opening advertising. Reviewing these figures with a business advisor is recommended before making a final decision.