When is the initial franchise fee for Aw payable?
Aw Franchise · 2025 FDDAnswer from 2025 FDD Document
ITIAL INVESTMENT**
| 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 |
| Travel and Living Costs while Training (Note 2) | $2,000 - $10,000 | As arranged | As agreed | Transportation lines, hotels, restaurants |
| Lease Security Deposit and Rent (1st 3 months) (Note 3) | $4,000 - $16,000 | As arranged | As arranged | Lessor |
| Leasehold Improvements | $30,000 - | As incurred | As agreed | Contractors |
| (Note 4) | $60,000 | |||
| Equipment/ Signage/ Furniture/Fixtures (Note 5) | $57,500 - $14 |
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 payable in two installments. The first half of the 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 franchisee's Papa Ray's Pizza Restaurant. These payments are made directly to Aw. Item 5 of the FDD may describe certain discounts available on the initial franchise fee.
It is important to note that these payments to Aw are non-refundable. This means that once the franchisee pays these fees, they will not be returned, even if the franchise does not open or the agreement is terminated. This is a standard practice in franchising, as the initial franchise fee compensates Aw for the time and resources spent in evaluating and onboarding the franchisee.
Prospective franchisees should carefully consider their financial situation and the suitability of the location before signing the Franchise Agreement and paying the initial franchise fee. It is advisable to conduct thorough due diligence, including reviewing the FDD, consulting with existing franchisees, and seeking professional advice from an attorney and financial advisor. Understanding the terms and conditions of the franchise agreement, including the payment schedule and refund policy, is crucial before making any financial commitments.