What does the high estimate for leasehold improvements assume about the leased space for an Aw franchise?
Aw Franchise · 2025 FDDAnswer from 2025 FDD Document
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 high estimate for leasehold improvements, which ranges from $30,000 to $60,000, assumes that the leased space is a vanilla box. This means the space is essentially a blank shell requiring significant build-out to meet Aw's specifications for a Papa Ray's Pizza Restaurant.
The FDD notes that leasehold improvement costs can vary significantly based on factors such as the size, condition, configuration, and geographical location of the premises, local zoning and building ordinances, and labor and material costs. The estimate includes the cost of an architect, if necessary, as well as contractors, building, and decorating materials and supplies.
The document suggests that franchisees can reduce these costs by negotiating with the landlord to cover some of the expenses or by leasing a site previously used as a restaurant that can be easily reconfigured. Aw highly recommends securing a site already configured for a restaurant with existing kitchen fixtures and equipment to minimize leasehold improvement expenses. Choosing a location that needs extensive work will likely push costs towards the higher end of the estimated range.