When is the initial $15,000 payment of the Aw initial franchise fee due?
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 Restauran
Source: Item 22 — CONTRACTS (FDD pages 39–40)
What This Means (2025 FDD)
According to Aw's 2025 Franchise Disclosure Document, the standard initial franchise fee is $30,000. However, the initial payment of $15,000 is due upon signing the Franchise Agreement. The remaining balance of $15,000 is due within five days of Aw's written approval of the franchise site.
There are exceptions to the standard initial franchise fee payment schedule. If a franchisee is (i) an existing franchisee in good standing purchasing an additional franchise; (ii) an honorably discharged Veteran; or (iii) a current or past employee of Aw, its affiliate, or one of its franchisees who was so employed for a minimum of one year, the initial franchise fee is $15,000. This reduced fee is paid in full upon signing the Franchise Agreement.
It is important to note that in the state of Illinois, Aw is required to defer all initial franchise fees until Aw has completed all initial obligations to the franchisee under the Franchise Agreement and the franchisee has commenced business. This deferral is due to Aw's financial condition. This means that for franchisees in Illinois, the payment schedule outlined above does not apply.