What is the initial franchise fee for an Aw franchise?
Aw Franchise · 2025 FDDAnswer from 2025 FDD Document
| Type of Expenditure | Amount- Range Estimated | Method of Payment | When Payable | To Whom Payment is Made |
|---|---|---|---|---|
| Initial Franchise Fee (Note 1) | $30,000 | 2 lump sum payments | ½ when you sign the franchise agreement; and ½ when we approve your location | Us |
Source: Item 7 — ESTIMATED INITIAL INVESTMENT (FDD pages 16–19)
What This Means (2025 FDD)
According to Aw's 2025 Franchise Disclosure Document, the initial franchise fee is $30,000. This fee is paid in two installments. The first half, $15,000, is due when the Franchise Agreement is signed. The remaining $15,000 is due within 5 days of Aw approving the location for the Papa Ray's Pizza Restaurant. These payments are made directly to Aw. Item 5 of the FDD provides details on potential discounts to this initial franchise fee.
It is important to note that this fee is non-refundable, as stated in the explanatory notes of Item 7. This is a common practice in franchising, as the fee compensates Aw for the initial costs of granting the franchise, including evaluating the franchisee and providing initial training and support. Prospective franchisees should carefully consider their financial situation and the terms of the Franchise Agreement before signing and paying the initial fee.
Beyond the initial franchise fee, prospective Aw franchisees should also be aware of other significant initial investment costs. These include expenses such as travel and living costs during training, lease security deposit and rent, leasehold improvements, equipment, signage, furniture, fixtures, POS computer systems, initial inventory and supplies, utility deposits, insurance, miscellaneous pre-opening expenses, grand opening advertising, and additional funds for the first three months of operation. These costs can range from $213,730 to $464,080, making it crucial to have sufficient capital before starting the business.