What does the low rent estimate assume regarding free rent for an Aw franchise?
Aw Franchise · 2025 FDDAnswer from 2025 FDD Document
- Lease Security Deposit; Rent. This estimate covers the security deposit and rent for the first 3 months for leasing a site ranging in size from 900 to 2,500 square feet.
Typically the security deposit for the lease is one month's rent.
The rent will vary depending on the size, type, condition and location of the premises.
The low estimate assumes that you will be able to negotiate some free rent at the beginning of the lease.
The estimate does not include purchasing a site which we would not recommend.
Source: Item 7 — ESTIMATED INITIAL INVESTMENT (FDD pages 16–19)
What This Means (2025 FDD)
According to Aw's 2025 Franchise Disclosure Document, the low estimate for the lease security deposit and rent assumes that a franchisee will be able to negotiate some free rent at the beginning of the lease term. The total estimated initial investment for lease security deposit and rent for the first three months ranges from $4,000 to $16,000.
This negotiation of free rent can significantly reduce the initial financial burden on the franchisee. Rent costs will vary depending on the size, type, condition, and location of the premises. The FDD estimates cover premises ranging from 900 to 2,500 square feet.
Negotiating free rent is a common practice in commercial leasing, especially for new businesses. This can provide Aw franchisees with crucial financial breathing room during the initial months of operation when revenue may be lower. However, franchisees should be aware that securing free rent is not guaranteed and depends on their negotiation skills and the landlord's willingness to offer such incentives.