Under what circumstances is the transfer fee waived for an Aw franchise?
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. |
Source: Item 6 — OTHER FEES (FDD pages 13–16)
What This Means (2025 FDD)
According to Aw's 2025 Franchise Disclosure Document, a transfer fee is generally required when transferring a franchise. However, the transfer fee is waived if the transfer is to a corporation owned by the franchisee. Otherwise, a transfer fee of either $9,000 or $5,000 is required.
The standard transfer fee for an Aw franchise is $9,000. However, the fee is reduced to $5,000 if the transferee is an existing Aw franchisee who has been approved for additional franchises. This provides an incentive for existing franchisees to expand their operations.
This 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. This means that any type of transfer that involves the business requires either the $9,000 or $5,000 transfer fee, unless it is being transferred to a corporation owned by the franchisee.