What outstanding payments must an Aw franchisee make before assigning the franchise?
Aw Franchise · 2025 FDDAnswer from 2025 FDD Document
(b) you have paid such royalty fees, marketing fund contributions, amounts for purchases and any other amounts owed to us or our affiliates which are then due and unpaid;
(f) You or the assignee must have paid us a transfer fee of Nine Thousand Dollars ($9,000.00).
In the event the assignee is an existing franchisee that we have approved for an additional franchise, the transfer fee shall be Five Thousand Dollars ($5,000.00);
Source: Item 22 — CONTRACTS (FDD pages 39–40)
What This Means (2025 FDD)
According to Aw's 2025 Franchise Disclosure Document, a franchisee must meet specific financial obligations before the company will approve an assignment of the franchise. The franchisee must pay all outstanding royalty fees, marketing fund contributions, amounts for purchases, and any other amounts owed to Aw or its affiliates that are due and unpaid at the time of the assignment. This ensures that Aw receives all revenue owed before transferring the franchise to a new owner.
In addition to settling outstanding debts, either the franchisee or the assignee is responsible for paying a transfer fee of $9,000. However, if the assignee is an existing Aw franchisee approved for an additional franchise, the transfer fee is reduced to $5,000. This fee covers Aw's administrative costs associated with the transfer and the review of the new franchisee.
These conditions ensure that Aw maintains financial stability and that new franchisees are properly vetted and trained. By requiring outstanding payments and a transfer fee, Aw protects its revenue stream and ensures that the new franchisee is committed to upholding the brand's standards. Franchisees should be aware of these costs when considering selling their franchise to avoid delays or complications in the transfer process.