How is the initial franchise fee for Aw paid?
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 |
This is our estimate of the costs you will incur to develop and open a Papa Ray's Pizza Restaurant. The factors that underlie this estimate can vary considerably depending on a number of variables, and the actual investment you may make in developing and opening your Papa Ray's Pizza Restaurant may be less or greater than the estimates given. Payments to us are non-refundable. Payments to third parties are not expected to be refundable unless you directly negotiate this with a supplier.
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- Initial Franchise Fee. One-half of the initial franchise fee is paid to us when you sign the Franchise Agreement and the balance of the initial franchise fee is paid within 5 days of the date we approve the site for your Papa Ray's Pizza Restaurant.
See Item 5 for a description of certain discounts available on the initial franchise fee.
In compiling these estimates, we relied on the experience of our affiliates who own and operate restaurants operating under the System. You should review these figures carefully with a business advisor before deciding whether to purchase the franchise. We do not offer financing directly or indirectly for any part of the initial investment. The availability and terms of financing from independent third parties will depend on factors such as the availability of financing generally, your creditworthiness, the amount and type of collateral you may have and the lending policies of the financial institutions concerning the type of business you will operate.
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 of $30,000 is to be paid in two lump sum payments. The first half of the initial franchise fee is due when the franchisee signs the franchise agreement. The remaining half is due within 5 days of Aw approving the location for the Papa Ray's Pizza Restaurant. These payments are made directly to Aw.
This payment structure is fairly common in the franchise industry, allowing the franchisee to spread out the initial investment. However, it's important to note that these payments to Aw are non-refundable. This means that if the location is not approved or the franchisee decides to terminate the agreement, the initial payments will not be returned.
Prospective franchisees should carefully consider the site selection process and their own financial situation before signing the franchise agreement and making the initial payment. Understanding the conditions under which the site will be approved is crucial. Franchisees should also confirm whether there are any discounts available on the initial franchise fee, as mentioned in Item 5 of the FDD. It is also important to note that Aw does not offer financing for any part of the initial investment.