When is the first half of the Aw initial franchise fee payable?
Aw Franchise · 2025 FDDAnswer from 2025 FDD Document
| 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 |
Source: Item 7 — ESTIMATED INITIAL INVESTMENT (FDD pages 16–19)
What This Means (2025 FDD)
According to Aw's 2025 Franchise Disclosure Document, the initial franchise fee is paid in two installments. The first half of the $30,000 initial franchise fee is due when you sign the franchise agreement. The remaining half is due when Aw approves the location for your Papa Ray's Pizza Restaurant. These payments are made directly to Aw.
This payment schedule is fairly typical in the franchise industry. It allows Aw to secure some capital upfront while giving the franchisee time to secure a suitable location. However, it's important to note that these payments to Aw are non-refundable, so a prospective franchisee should carefully consider their decision before signing the agreement.
Prospective franchisees should also be aware of the other initial investment costs, which range from $213,730 to $464,080. These costs include items such as travel and living expenses while training, lease security deposit and rent, leasehold improvements, equipment, signage, furniture, fixtures, POS computer systems, initial inventory and supplies, utility deposits, insurance, miscellaneous pre-opening expenses, grand opening advertising, and additional funds for the first three months of operation.