factual

Is there a different transfer fee for an existing Aw franchisee acquiring an additional franchise?

Aw Franchise · 2025 FDD

Answer from 2025 FDD Document

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, the standard transfer fee is $9,000. However, if an existing Aw franchisee, who has been approved by Aw for an additional franchise, is the assignee, the transfer fee is reduced to $5,000. This represents a discount of $4,000 for existing franchisees looking to expand their operations within the Aw system.

This reduced fee could incentivize current franchisees in good standing to invest in additional Aw locations. By lowering the financial barrier to entry for existing operators, Aw may be aiming to foster growth from within its franchise network. This can be a strategic move, as existing franchisees already understand the Aw business model, brand standards, and operational procedures, potentially leading to more successful new locations.

However, it's important to note that this reduced fee is contingent on Aw's approval of the existing franchisee for an additional franchise. This implies that Aw will assess the franchisee's performance, financial stability, and compliance with the franchise agreement before granting approval. Therefore, not all existing franchisees are guaranteed the reduced transfer fee. Prospective franchisees should inquire about the specific criteria Aw uses to evaluate existing franchisees for additional franchise opportunities to understand the requirements for eligibility.

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.