When is the second half of the Aw initial franchise fee payable?
Aw Franchise · 2025 FDDAnswer from 2025 FDD Document
| Type of Expenditure | Amount- Range Estimated | Method of Payment | When Payable | To Whom Payment is Made |
|---|---|---|---|---|
| Initial Franchise Fee (Note 1) | $30,000 | 2 lump sum payments | ½ when you sign the franchise agreement; and ½ when we approve your location | Us |
Source: Item 7 — ESTIMATED INITIAL INVESTMENT (FDD pages 16–19)
What This Means (2025 FDD)
According to Aw's 2025 Franchise Disclosure Document, the initial franchise fee is paid in two installments. The first half of the $30,000 initial franchise fee is due when you sign the franchise agreement. The remaining half is due within 5 days of Aw approving the site for your Papa Ray's Pizza Restaurant.
This payment schedule is fairly common in the franchise industry, as it allows Aw to begin working with the franchisee and incurring expenses before the entire fee is paid. It also gives Aw some assurance that the franchisee is committed to the project before they invest significant resources in site selection and approval. For the franchisee, this staged payment may make the initial investment more manageable.
It is important to note that all payments to Aw are non-refundable. This means that if the site is not approved or if the franchisee decides to terminate the agreement, the initial franchise fee will not be returned. Therefore, prospective franchisees should carefully consider the site selection process and their own financial situation before signing the franchise agreement and paying the first half of the initial franchise fee.