If an Aw franchisee is an honorably discharged veteran, what is their initial franchise fee?
Aw Franchise · 2025 FDDAnswer from 2025 FDD Document
bited by this paragraph). Further, during the term of this Agreement, you will not (1) divert customers or business from your Papa Ray's Pizza Restaurant to any other business or (2) hire any employees of ours, our affiliates or any other franchisees.
10. FEES AND ROYALTIES
10.1 Initial Franchise Fee. You must pay us an initial franchise fee (the "Initial Franchise Fee") of Thirty Thousand Dollars ($30,000.00). Upon signing this Agreement, you must pay us Fifteen Thousand Dollars ($15,000.00) of the Initial Franchise Fee in cash. The balance of Fifteen Thousand Dollars ($15,000.00) is due within five (5) days of our issuance of written approval of the site for your Papa Ray's Pizza Restaurant.
If you are (i) an existing franchisee in good standing under your existing franchise agreements with us purchasing an additional franchise; (ii) a honorably discharged Veteran; or (iii) a current or past employee of ours, our affiliate or one of our franchisees who was so employed
for a minimum of one year, you must pay us an Initial Franchise Fee of Fifteen Thousand Dollars ($15,000.00) in cash in full upon the signing of this Agreement.
Source: Item 22 — CONTRACTS (FDD pages 39–40)
What This Means (2025 FDD)
According to Aw's 2025 Franchise Disclosure Document, an honorably discharged veteran who becomes a franchisee qualifies for a reduced initial franchise fee. Instead of the standard $30,000, the initial franchise fee is $15,000. This reduced fee is also available to existing franchisees purchasing an additional franchise and current or past employees of Aw, its affiliates, or one of its franchisees who were employed for at least one year.
The initial franchise fee is paid in two installments. The first $15,000 is due upon signing the Franchise Agreement. The remaining $15,000 is due within five days of Aw's written approval of the restaurant site. However, for veterans and other qualifying individuals, the entire initial franchise fee is $15,000, payable in cash upon signing the agreement.
Aw emphasizes that the initial franchise fee is fully earned upon signing the agreement due to the expenses incurred in providing assistance and services to the franchisee and the lost opportunity to negotiate with others for the franchise. As such, the initial franchise fee is non-refundable once the agreement is signed. This is a standard practice in franchising, as the franchisor incurs immediate costs in setting up the new franchise location.