How does the transfer fee for an Aw franchise in Item 6 compare to the initial franchise fee in Item 5?
Aw Franchise · 2025 FDDAnswer 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. |
What This Means (2025 FDD)
According to Aw's 2025 Franchise Disclosure Document, the standard initial franchise fee is $30,000, while the transfer fee is either $9,000 or $5,000 depending on the transferee. The initial franchise fee is what a new franchisee pays to start an Aw franchise. The transfer fee is paid when an existing franchisee sells their franchise to someone else.
For a new Aw franchisee, the initial franchise fee is a significant upfront cost. However, certain individuals such as existing franchisees, honorably discharged veterans, and current or past employees of Aw, its affiliates, or franchisees employed for a minimum of one year, may qualify for a discounted initial franchise fee of $15,000. This represents a substantial saving compared to the standard fee.
The transfer fee is relevant if a franchisee decides to sell their Aw franchise. The fee is $9,000 unless the buyer is an existing Aw franchisee approved for additional franchises, in which case the fee is reduced to $5,000. This lower fee for existing franchisees might incentivize current franchisees to expand their operations by acquiring existing locations. The transfer fee is payable before the transfer of the franchise, an interest in Papa Ray’s Pizza Restaurant, the assets of Papa Ray’s Pizza Restaurant or an interest in the franchisee. There is no fee if the transfer is to a corporation owned by the franchisee.
In summary, the initial franchise fee is a larger, one-time payment required to start a new Aw franchise, while the transfer fee is a smaller payment incurred only when transferring ownership of an existing franchise. The transfer fee is considerably less than the initial franchise fee, especially the standard initial franchise fee.