How must the initial franchise fee for an Aw franchise be paid?
Aw Franchise · 2025 FDDAnswer from 2025 FDD Document
ITIAL FEES**
You must pay an initial franchise fee of $30,000. It is due and payable in a lump sum by certified or cashier's check upon signing the Franchise Agreement. The franchise fee is not refundable under any circumstances.
The following franchisees will pay a discounted initial franchise fee of $15,000:
- (1) an existing Papa Ray's Pizza Restaurant franchisee currently operating a Papa Ray's Pizza Restaurant in compliance with the franchise agreement;
- (2) a honorably discharged Veteran;
- (3) a current or past employee of ours, an affiliate or one of our franchisees who was so employed for a minimum of one year.
The $15,000 non-refundable initial franchise fee must be paid in cash in full when the franchise agreemen
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 $30,000. The standard payment requires a lump sum payment via certified or cashier's check upon signing the Franchise Agreement. This fee is non-refundable under any circumstances. However, the FDD also states that the initial franchise fee can be paid in cash.
Certain franchisees may qualify for a discounted initial franchise fee of $15,000. These include existing Papa Ray's Pizza Restaurant franchisees in compliance with their franchise agreement, honorably discharged veterans, and current or past employees of Aw, its affiliates, or franchisees who have been employed for a minimum of one year. The discounted $15,000 initial franchise fee must be paid in cash in full when the franchise agreement is signed.
Item 22 of the Aw FDD provides further details on the initial franchise fee payment. It states that the $30,000 fee is paid in two installments: $15,000 in cash upon signing the agreement, and the remaining $15,000 within five days of Aw's written approval of the site for the Papa Ray's Pizza Restaurant. This contrasts with the Item 5 description of the initial fee being paid in full at signing.
Prospective franchisees should clarify with Aw the exact payment schedule and accepted payment methods for the initial franchise fee to ensure compliance with the franchise agreement. The discrepancy between Item 5 and Item 22 highlights the importance of carefully reviewing all sections of the FDD and seeking clarification on any inconsistencies.