What does the high estimate for leasehold improvements for Aw assume about the leased space?

According to Aw's 2025 Franchise Disclosure Document, the high estimate for leasehold improvements assumes that the leased space is a vanilla box. This means the space is essentially a blank shell, requiring significant work to make it suitable for a Papa Ray's Pizza Restaurant. The FDD indicates in Item 7 that leasehold improvements can range from $30,000 to $60,000.

This is a crucial consideration for prospective Aw franchisees because the condition of the leased space can drastically affect the initial investment. A vanilla box requires complete build-out, including flooring, walls, ceilings, electrical work, plumbing, and potentially modifications to meet local zoning and building ordinances. These costs can quickly escalate, especially considering factors like the size, configuration, and geographical location of the premises, as well as labor and material costs.

Aw recommends trying to secure a site already configured for a restaurant with existing kitchen fixtures and equipment to mitigate these costs. Securing landlord contributions to leasehold improvements can also reduce expenses. Therefore, franchisees should carefully evaluate potential locations and negotiate lease terms to minimize the financial impact of leasehold improvements. Understanding this assumption allows franchisees to plan and budget more accurately, potentially saving a significant amount of money during the initial setup phase.