A And W
A And W offers quick-service restaurants featuring A&W Root Beer in various formats including Freestanding, In-line, and Captive locations. Known for its root beer, the franchise operates in the fast-food industry.
A And W franchise FAQ
How much does it cost to open one — the total initial investment?
The total initial investment necessary to begin operation, not including rent or land costs, ranges from $298,899 to $724,971 for a Captive Restaurant, $424,434 to $1,129,183 for an In-line Restaurant, and $894,434 to $1,639,906 for a Freestanding Restaurant. [p.1]
What is the initial franchise fee?
The initial franchise fee varies based on the type of restaurant and the existing status of the franchisee. For a new franchisee opening a Freestanding Restaurant, In-line Restaurant, or Captive Restaurant, it is $30,000. If an existing franchisee in good standing opens their second such restaurant, the fee is $15,000. Additionally, if a franchisee signs A&W's Development Agreement for developing 3 Restaurants, the initial franchise fees are reduced to $25,000 for the first Restaurant, $15,000 for the second, and $12,500 for the third. [p.9, p.10, p.18]
What are the ongoing royalty and advertising fees?
The ongoing royalty fee is based on unit sales and is generally due within 30 days of the period in which the corresponding sales occur [p.131]. Additionally, a continuing advertising fee is imposed by A&W and payable to NAC, though specific details about its calculation are not provided in these excerpts [p.232].
How long is the initial franchise agreement, and can I renew it?
The initial term of the franchise agreement is 20 years for a Freestanding Restaurant or In-line Restaurant, and 10 years for a Captive Restaurant. You have the option to renew the agreement for two consecutive five-year terms, but you must meet certain criteria, including remodeling the restaurant to A&W's then-current standards [p.7].
Can I sell or transfer my franchise, and what does that require?
According to the FDD, you can sell or transfer your franchise, but it must be approved by the franchisor for good cause [p.68]. The total sales price cannot jeopardize the economic viability of the restaurant or future operations [p.178]. Additionally, if you are in Washington or planning to operate in Washington, you need to sign the Co-Brand Restaurant Addendum [p.217], and you will also be required to enter into this addendum even if you are not a resident of Washington but purchasing a franchise that will be operated there.
On what grounds can the franchisor terminate the agreement?
This isn't specified in the excerpts. The provided FDD excerpts primarily detail the conditions under which a franchisee can terminate the agreement and mention some legal restrictions on franchisor termination, but do not specify grounds for the franchisor to terminate the agreement.
What financial requirements — net worth and liquid capital — do I need to qualify?
This isn't specified in the excerpts.
Do I get an exclusive or protected territory?
No, you do not receive an exclusive territory. You may face competition from other franchisees, outlets owned by A&W, or other competitive brands controlled by A&W [p.34]. This isn't specified in the excerpts for additional protection beyond trademarks.
What training and ongoing support does the franchisor provide?
The franchisor provides initial management training through the Management Training Course, which is offered free of cost for up to three trainees but may charge $200 per day for additional attendees. This course covers food safety certification and lasts between 8 and 14 days at A&W's facilities in Lexington and Richmond, Kentucky. Ongoing support includes online access to the Operations Manual and other training materials through www.teamaw.com. [p.152] [p.32] [p.19] [p.14]
How many franchised outlets are there, and how many have closed or been terminated?
As of December 31, 2024, there were 427 franchised Restaurants in the A&W System. The number of closed or terminated franchises is not specified in the excerpts provided. [p.44]
Does the franchisor share any financial performance or earnings information?
The franchisor may provide actual records of an existing outlet you are considering buying. However, other than this, they do not make any financial performance representations and do not authorize their employees or representatives to make such representations either orally or in writing [p.50]. If you receive any other financial performance information or projections of your future income, you should report it to the franchisor's management as specified [p.50].
What am I restricted to selling, and where must I buy supplies?
You are restricted to selling A&W system products and services at your restaurant, including through delivery by third-party providers, catering, and online ordering in compliance with A&W's procedures. You may not engage in wholesale sales of these products or sell root beer concentrate or other competing brands [p.39]. Regarding supplies, you may have to buy or lease items from the franchisor or a limited group of suppliers designated by them, which might be more expensive than purchasing elsewhere [p.3].