Is the royalty fee refundable for an Aw franchise?

According to Aw's 2025 Franchise Disclosure Document, the royalty fee is not refundable under any circumstances. The franchisee is obligated to pay a weekly royalty fee, which is 5% of the Gross Revenue of the Papa Ray's Pizza Restaurant. This fee is payable every Wednesday, covering the period from the previous Monday through Sunday, via electronic transfer.

This non-refundable policy means that once the royalty fee is paid, it cannot be recovered, regardless of any issues or changes in circumstances that may arise. This is a standard practice in franchising, as the royalty fee compensates Aw for the ongoing use of its brand, systems, and support provided to the franchisee.

Prospective Aw franchisees should carefully consider this non-refundable aspect of the royalty fee and ensure they have a solid understanding of their projected revenues and expenses. It is crucial to manage their finances effectively to meet this ongoing obligation. Franchisees should also be aware that other fees, such as the initial franchise fee, are also generally non-refundable, as they compensate Aw for the initial costs of setting up the franchise.