Who is responsible for paying the transfer fee to Aw in an assignment scenario?
Aw Franchise · 2025 FDDAnswer from 2025 FDD Document
in the grant of franchises for a Papa Ray's Pizza Restaurant, which may provide for royalty fees, marketing fund contributions and other fees and terms and conditions that differ from those contained in this Agreement; or (b) an assignment and assumption agree
Source: Item 22 — CONTRACTS (FDD pages 39–40)
What This Means (2025 FDD)
According to Aw's 2025 Franchise Disclosure Document, either the franchisee (you) or the assignee is responsible for paying the transfer fee in an assignment scenario. The standard transfer fee is Nine Thousand Dollars ($9,000.00). However, if the assignee is an existing Aw franchisee that Aw has approved for an additional franchise, the transfer fee is reduced to Five Thousand Dollars ($5,000.00).
This means that when you sell your Aw franchise to a new owner, either you or the buyer will have to pay Aw a transfer fee. The exact allocation of this fee can be negotiated between you and the buyer, but Aw ultimately requires that it be paid by one of you before the transfer is approved.
It is important to note that the transfer is not approved until Aw receives the transfer fee. Prospective franchisees should clarify with Aw whether there are any specific requirements or preferences regarding who pays the transfer fee and ensure that the assignment agreement clearly states who is responsible for this payment.