Under what condition is the payment of the initial franchise fee for Aw deferred in Illinois?

According to Aw's 2025 Franchise Disclosure Document, in the state of Illinois, the payment of the initial franchise fee is deferred until Aw has fulfilled its initial obligations to the franchisee and the franchisee has commenced business operations. This requirement is imposed by the Office of the Illinois Attorney General due to Aw's financial condition. This deferral is specific to franchisees operating in Illinois.

This condition means that prospective Aw franchisees in Illinois will not be required to pay the initial franchise fee upfront. Instead, the fee is deferred until Aw has met its obligations, such as providing training, site selection assistance, and other pre-opening support, and the franchisee has started running their Aw business. This arrangement reduces the initial financial burden on the franchisee and provides some assurance that Aw will deliver on its promises before receiving the franchise fee.

For franchisees, this deferral offers a significant advantage by lowering the initial investment and aligning the franchisor's interests with the franchisee's success. However, it is important for potential franchisees to understand exactly what constitutes Aw's "initial obligations" and when the franchise is considered to have "commenced doing business," as these milestones trigger the payment of the franchise fee. Franchisees should seek clarity on these definitions to avoid any misunderstandings or disputes later on.

It is also important to note that this deferral is due to Aw's financial condition, as determined by the Illinois Attorney General. While this deferral provides some financial relief initially, prospective franchisees should still conduct thorough due diligence on Aw's financial stability and long-term viability before investing in the franchise.