What is the transfer fee for an Aw franchise if the assignee is not an existing franchisee?

According to Aw's 2025 Franchise Disclosure Document, a franchisee must pay a transfer fee when assigning their franchise to a new owner. If the person taking over the franchise is not already an existing Aw franchisee approved for an additional franchise, the transfer fee is $9,000. This fee must be paid by either the seller (the current franchisee) or the buyer (the new franchisee).

This transfer fee covers Aw's costs of approving the transfer, assessing the new franchisee, and updating the franchise agreement. The FDD specifies several conditions that must be met for Aw to approve the transfer. These conditions include the assignee meeting Aw's standards for franchisees, completing the initial training program, and assuming all obligations under the franchise agreement. The franchisee also needs to pay any outstanding amounts owed to Aw.

It is important to note that Aw's approval of the transfer does not waive any claims Aw may have against the original franchisee. Additionally, Aw can require upgrades or remodels to ensure the Papa Ray's Pizza Restaurant reflects the current brand image. This could involve additional capital expenditures for the new franchisee.

For a prospective Aw franchisee, it's crucial to understand these transfer conditions and fees. If they plan to sell their franchise in the future, they should factor in this $9,000 transfer fee as a cost of selling the business. They should also be aware that Aw has significant control over the transfer process and can impose additional requirements on the new franchisee.