factual

What is the standard initial franchise fee for an Aw franchise?

Aw Franchise · 2025 FDD

Answer from 2025 FDD Document

ITIAL FEES**

You must pay an initial franchise fee of $30,000. It is due and payable in a lump sum by certified or cashier's check upon signing the Franchise Agreement. The franchise fee is not refundable under any circumstances.

The following franchisees will pay a discounted initial franchise fee of $15,000:

  • (1) an existing Papa Ray's Pizza Restaurant franchisee currently operating a Papa Ray's Pizza Restaurant in compliance with the franchise agreement;
    • (2) a honorably discharged Veteran;
  • (3) a current or past employee of ours, an affiliate or one of our franchisees who was so employed for a minimum of one year.

The $15,000 non-refundable initial franchise fee must be paid in cash in full when the franchise agreemen

Source: Item 5 — INITIAL FEES (FDD pages 12–13)

What This Means (2025 FDD)

According to Aw's 2025 Franchise Disclosure Document, the standard initial franchise fee is $30,000. This fee is payable in a lump sum via certified or cashier's check upon signing the Franchise Agreement. The FDD explicitly states that this initial franchise fee is non-refundable under any circumstances. This means that once the agreement is signed and the fee is paid, a franchisee cannot get this money back, even if they later decide not to proceed with opening the franchise.

However, Aw offers a discounted initial franchise fee of $15,000 to certain franchisees. This discount applies to existing Papa Ray's Pizza Restaurant franchisees who are currently operating in compliance with their franchise agreement, honorably discharged veterans, and current or past employees of Aw, its affiliates, or one of its franchisees who have been employed for a minimum of one year. To qualify for this discount, the $15,000 non-refundable initial franchise fee must be paid in cash in full when the franchise agreement is signed.

The initial franchise fee provides Aw with revenue to cover initial services such as reviewing the application, providing the franchise agreement, and initial training. The initial franchise fee does not cover additional costs such as site selection, build out, or other expenses to get the location open. Prospective franchisees should carefully consider their eligibility for the discounted fee and factor the non-refundable nature of the fee into their decision-making process.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.