What does the leasehold improvements estimate include for an Aw franchise?
Aw Franchise · 2025 FDDAnswer from 2025 FDD Document
You must make certain leasehold improvements at the premises of Papa Ray's Pizza Restaurant according to our plans and specifications.
The cost of the improvements vary greatly depending upon the size, condition, configuration, and geographical location of the premises, local zoning and building ordinances, labor and material costs, and other economic factors.
This estimate includes the cost of an architect, if necessary, and contractors and building and decorating materials and supplies.
Your expense will be less if you can arrange for the landlord to cover some of the costs of leasehold improvements or if you can lease a site previously used for a restaurant facility and can suitably configure the site with limited renovations.
We highly recommend trying to secure a site that already is configured for a restaurant and that contains some existing kitchen fixtures and equipment.
The high estimate assumes that the leased space is a vanilla box.
Source: Item 7 — ESTIMATED INITIAL INVESTMENT (FDD pages 16–19)
What This Means (2025 FDD)
According to Aw's 2025 Franchise Disclosure Document, the leasehold improvements estimate ranges from $30,000 to $60,000. This estimate covers the costs associated with modifying the premises to meet Aw's standards and specifications. These improvements can vary significantly based on several factors, including the size, condition, configuration, and geographical location of the property. Local zoning and building ordinances, as well as labor and material costs, also play a role in determining the final expense. The estimate includes the cost of an architect, if one is needed, as well as payments to contractors for building and decorating materials and supplies.
For prospective Aw franchisees, this means that the condition of the location they choose can greatly impact their initial investment. Securing a site that already has some restaurant infrastructure can significantly reduce these costs. Aw highly recommends trying to find a site already configured for a restaurant with existing kitchen fixtures and equipment. Franchisees may also be able to negotiate with the landlord to cover some of the leasehold improvement expenses, further reducing the financial burden.
The high end of the estimate, $60,000, assumes that the leased space is a vanilla box, meaning it is a completely empty space requiring all new construction and modifications. Therefore, franchisees should carefully evaluate potential locations and consider the cost of improvements when making their decision. Understanding these factors can help franchisees plan their budget more accurately and potentially lower their initial investment.
It is important to note that these figures are estimates, and the actual costs may vary. Aw advises franchisees to review these figures carefully with a business advisor before making a final decision. By considering these factors and seeking professional advice, prospective franchisees can make informed decisions about their investment in an Aw franchise.