Is the reduced initial franchise fee for an Aw franchise available to past employees of a franchisee?
Aw Franchise · 2025 FDDAnswer from 2025 FDD Document
bited by this paragraph). Further, during the term of this Agreement, you will not (1) divert customers or business from your Papa Ray's Pizza Restaurant to any other business or (2) hire any employees of ours, our affiliates or any other franchisees.
10. FEES AND ROYALTIES
10.1 Initial Franchise Fee. You must pay us an initial franchise fee (the "Initial Franchise Fee") of Thirty Thousand Dollars ($30,000.00). Upon signing this Agreement, you must pay us Fifteen Thousand Dollars ($15,000.00) of the Initial Franchise Fee in cash. The balance of Fifteen Thousand Dollars ($15,000.00) is due within five (5) days of our issuance of written approval of the site for your Papa Ray's Pizza Restaurant.
If you are (i) an existing franchisee in good standing under your existing franchise agreements with us purchasing an additional franchise; (ii) a honorably discharged Veteran; or (iii) a current or past employee of ours, our affiliate or one of our franchisees who was so employed
for a minimum of one year, you must pay us an Initial Franchise Fee of Fifteen Thousand Dollars ($15,000.00) in cash in full upon the signing of this Agreement.
Source: Item 22 — CONTRACTS (FDD pages 39–40)
What This Means (2025 FDD)
According to Aw's 2025 Franchise Disclosure Document, a reduced initial franchise fee is available to certain individuals. The standard initial franchise fee for an Aw franchise is $30,000, with $15,000 due upon signing the agreement and the remaining $15,000 due within five days of site approval.
However, a reduced initial franchise fee of $15,000 is available to individuals who meet specific criteria. This includes existing Aw franchisees in good standing purchasing an additional franchise, honorably discharged veterans, and current or past employees of Aw, its affiliates, or one of its franchisees. To qualify as a past employee, the individual must have been employed for a minimum of one year.
This reduced fee can significantly lower the initial investment for eligible candidates, making franchise ownership more accessible. It is important to note that this reduced fee is non-refundable once the Franchise Agreement is signed. Prospective franchisees should confirm their eligibility with Aw and understand all terms and conditions associated with the reduced fee.