What is the standard transfer fee for an Aw franchise assignment?

According to Aw's 2025 Franchise Disclosure Document, the standard transfer fee for a franchise assignment is $9,000.00. This fee is payable by either the franchisee or the assignee. However, there is an exception: if the assignee is an existing Aw franchisee who has been approved for an additional franchise, the transfer fee is reduced to $5,000.00.

This transfer fee covers Aw's administrative costs and efforts in approving the transfer, assessing the new franchisee, and updating the franchise agreement. The fee is fairly standard in the franchise industry, as it compensates the franchisor for their time and resources in ensuring a smooth transition and maintaining brand standards.

It is important to note that the transfer is not guaranteed simply by paying the fee. Aw must still approve the assignee based on criteria such as moral character, business experience, financial resources, and absence of conflicting interests. Additionally, outstanding payments to Aw must be settled, the assignee must complete the initial training program, and the premises' lessor must consent to the assignment or sublease. These conditions ensure that the new franchisee is well-prepared and meets Aw's standards for operating a successful franchise.

Prospective franchisees should carefully consider these transfer conditions and fees, as they can significantly impact the ability to sell or transfer the franchise in the future. Understanding the requirements and potential costs associated with transferring the franchise is a crucial part of the due diligence process.