How Much Does a A&w Franchise Cost?
Data from the 2025 Franchise Disclosure Document
Investment Summary
Total Investment
$299K – $1.6M
Franchise Fee
$30K
Royalty
5.0%
Ad Fund
5.0%
Cost Breakdown
Initial Franchise Fee
The initial franchise fee for A&w is $30K. This one-time payment covers the right to operate under the brand, access to proprietary systems, and initial training programs.
Total Investment Range
Opening a A&w franchise requires a total investment of $299K – $1.6M. This range typically includes real estate or leasehold improvements, equipment and fixtures, initial inventory, signage, insurance, and working capital to sustain operations during the ramp-up period.
Working capital alone ranges from $30K to $150K.
Ongoing Costs
Beyond the initial investment, A&w franchisees pay ongoing fees. The royalty fee is 5.0% of gross sales (Gross Sales). The advertising or brand fund contribution is 5.0% of gross sales.
Net Worth & Liquid Capital Requirements
A&w requires working capital of $30K – $150K to cover initial operating expenses. This is the liquid cash you should have available beyond the franchise fee and buildout costs.
What Can You Earn?
According to A&w's Item 19 financial performance representation:
Median gross sales: $1.3M
This figure comes from Item 19 of the FDD. Gross sales are not the same as take-home profit. After deducting royalties, ad fund fees, rent, labor, and COGS, net income is typically a fraction of gross revenue.
How Do Banks View A&w?
SBA Loans Issued
21
Default Rate
12.5%
The SBA (Small Business Administration) tracks loan performance for franchise brands. A&w has 21 SBA-backed loans on record. The default rate is 12.5%, which is below the franchise industry average, indicating relatively lower lending risk. A lower default rate generally indicates that lenders view the franchise as a safer investment, though past performance does not guarantee future results.
Next Steps
Talk to current A&w franchise owners
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