In Illinois, when must the Aw franchisee commence doing business for the initial franchise fee to be due?

According to Aw's 2025 Franchise Disclosure Document, Illinois franchisees do not have to pay the initial franchise fee until Aw has met its initial obligations to the franchisee and the franchisee has commenced business operations. This requirement is imposed by the Office of the Illinois Attorney General because of Aw's financial condition. This deferral is specifically outlined in the addendum to the Franchise Disclosure Document for the State of Illinois.

This means that a prospective Aw franchisee in Illinois will not be required to pay the initial franchise fee upfront. Instead, the fee is deferred until Aw has fulfilled its initial obligations, such as providing training, site selection assistance, and other pre-opening support. Only after Aw has met these obligations and the franchisee has started running the business does the initial franchise fee become due.

This arrangement provides a level of financial protection for franchisees in Illinois, ensuring that they only pay the initial franchise fee after Aw has provided the agreed-upon support and they are actively operating their franchise. This condition is particularly important given that the deferral is due to Aw's financial condition, suggesting that franchisees should carefully evaluate Aw's ability to provide the necessary support and services before entering into a franchise agreement.