When is the initial franchise fee for an Aw franchise due?
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 5 — INITIAL FEES (FDD pages 12–13)
What This Means (2025 FDD)
According to Aw's 2025 Franchise Disclosure Document, the initial franchise fee is due in two installments. The standard initial franchise fee is $30,000. One-half of this fee, which is $15,000, is due when you sign the Franchise Agreement. The remaining balance of $15,000 is due within five days of Aw's written approval of the site for your Papa Ray's Pizza Restaurant. The initial franchise fee is typically non-refundable once paid to Aw.
However, the FDD also states that certain franchisees may qualify for a discounted initial franchise fee of $15,000. This reduced fee applies to existing Papa Ray's Pizza Restaurant franchisees, honorably discharged veterans, and current or past employees of Aw, its affiliates, or its franchisees who have been employed for at least one year. If you qualify for the discounted fee, the entire $15,000 is due in cash when you sign the franchise agreement.
Therefore, prospective Aw franchisees should be aware of the payment schedule for the initial franchise fee and whether they qualify for any discounts. It is important to have the funds readily available when signing the franchise agreement and upon site approval to avoid any delays in the franchise process. Understanding the non-refundable nature of the fee is also crucial before committing to the franchise.