Are payments to third parties expected to be refundable for Aw franchisees?

According to Aw's 2025 Franchise Disclosure Document, payments made directly to Aw are non-refundable. However, payments to third-party suppliers are not expected to be refundable unless the franchisee directly negotiates a refund agreement with the supplier. This means that franchisees should carefully consider the terms and conditions of any agreements they enter into with third-party suppliers, as refunds are not guaranteed.

This policy has significant implications for prospective Aw franchisees. For example, the estimated initial investment for leasehold improvements ranges from $30,000 to $60,000, payable to contractors. If a franchisee pays a contractor for leasehold improvements and then encounters issues, such as delays or unsatisfactory work, the franchisee's ability to obtain a refund will depend on their direct negotiations with the contractor. Aw does not guarantee refunds from these third parties.

Similarly, the investment for equipment, signage, furniture, and fixtures ranges from $57,500 to $143,750, payable to approved suppliers. The POS computer systems range from $12,330 to $25,330 payable to designated suppliers. The initial inventory and supplies range from $10,000 to $19,000 payable to designated and approved suppliers, including Aw. Since payments to Aw are non-refundable, and refunds from other suppliers are not guaranteed, franchisees bear the risk of non-refundable expenses if they are unable to open their Papa Ray's Pizza Restaurant or encounter other issues. Franchisees should perform thorough due diligence on all suppliers and negotiate favorable refund terms where possible to mitigate this risk.