Who is responsible for paying the Aw transfer fee, the franchisee or the assignee?
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 (assignor) or the assignee is responsible for paying the transfer fee. The standard transfer fee is Nine Thousand Dollars ($9,000.00). However, if the assignee is an existing Aw franchisee approved for an additional franchise, the transfer fee is reduced to Five Thousand Dollars ($5,000.00).
This means that when transferring an Aw franchise, the responsibility for paying the $9,000 transfer fee (or $5,000 in the case of an existing franchisee) can be negotiated between the seller (franchisee) and the buyer (assignee). The franchise agreement stipulates that either party can fulfill this obligation to Aw.
For a prospective franchisee, this presents an opportunity to negotiate the terms of the transfer, including who bears the cost of the transfer fee. It's crucial to clarify this point during negotiations to avoid any misunderstandings and ensure a smooth transfer process. The franchisee and assignee should agree on who will pay the fee and document it in their transfer agreement.