factual

When is the transfer fee due for an Aw franchise?

Aw Franchise · 2025 FDD

Answer from 2025 FDD Document

TYPE OF FEE1,3 AMOUNT DUE DATE REMARKS
conference. conference, and if you fail to do so, the conference fee must still be paid to us. You are responsible for your travel expenses.
Transfer Fee $9,000 or $5,000 if the transferee is an existing franchisee approved by us for additional franchises. Before transfer Payable when you transfer the franchise, an interest in Papa Ray’s Pizza Restaurant, the assets of Papa Ray’s Pizza Restaurant or an interest in the franchisee; no fee if the transfer is to a corporation owned by you.
Renewal Fee $2,500 When you sign renewal agreement Payable if you renew your franchise at the end of the initial term.
Audit/Inspection Costs Cost of audit or inspection, including charges of professional advisors, and travel expenses, room and board and compensation or fees of our employees or agents Upon billing Payable if audit necessary because of your failure to file reports, supporting records, financial statements, or other required information in a timely fashion or if any audit reveals an understatement of the reported Gross Sales of greater than 2%.
Service Charge Greater of $150 or the highest interest rate allowed by law not to exceed 1 ½%. Upon billing Payable on all overdue accounts due to us.
Management Fee Currently $250 per day, plus expenses; subject to increase As agreed Payable to us during period that our appointed manager manages Papa Ray’s Pizza Restaurant, at our option, after 14 days from your receipt of a default notice or 30 days following your death or disability.
Fee for supplier approval $250 Upon demand Payable if you request our determination if a supplier meets our approval.
Relocation fee $500 plus any travel expenses incurred by us in visiting the proposed site. Upon demand Payable if you relocate your store. You must obtain our prior consent to relocate.

Source: Item 6 — OTHER FEES (FDD pages 13–16)

What This Means (2025 FDD)

According to Aw's 2025 Franchise Disclosure Document, the transfer fee is due before the transfer of the franchise. Specifically, it is payable when you transfer the franchise, an interest in Papa Ray’s Pizza Restaurant, the assets of Papa Ray’s Pizza Restaurant, or an interest in the franchisee.

The transfer fee is $9,000, but it is reduced to $5,000 if the transferee is an existing Aw franchisee approved for additional franchises. This lower fee may incentivize existing franchisees to expand their operations by acquiring existing locations.

Notably, the FDD states that no transfer fee is required if the transfer is to a corporation owned by you. This provides an avenue for franchisees to restructure their business without incurring additional costs, offering flexibility in managing their assets and business operations.

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.