A & W Restaurant franchise research

Investment by format

Format-specific estimates only. Do not combine one format's minimum with another format's maximum.

Investment sourceFDD p.15 ↗

Franchise fees and ongoing costs

Franchise fee

$15,000 to $30,000 · Extracted Item 5 scalar range, not a universal minimum or maximum; formats, eligibility, discounts and waivers require original-filing review.

Royalty

5% · 5% of net sales, paid monthly by the 20th following the sales period; new restaurants get a 3-month royalty waiver, then 3% of net sales in year 1 (remainder), 4% in year 2, 5% in year 3+

Marketing contribution

5% (basis not captured; see original filing)

Technology fee

Not captured

Other fees

Interest on late payments (lesser of 18%/yr or state max); Audit costs + 18% interest if underreporting sales by 2%+; Insurance ~$4,000-$10,000/yr (estimate)

Working capital (FDD Item 7)

$30,000 - $150,000 for Freestanding/In-line Restaurants ($30,000 - $140,000 for Captive), covering payroll, royalties, advertising, trash removal, promotional expenses, management bonus, insurance, taxes/licenses, bank charges, cost of sales, utilities and repair/maintenance for 3 months; does not include revenue generated during that period.

Fees sourceFDD p.11 ↗

Working capital is drawn from Item 7. The Investment source below locates the investment section, not an independently verified working-capital scalar.

Investment sourceFDD p.15 ↗

Franchise fee sourceFDD · page not captured ↗

Financial performance: Item 19

Item 19 captured

Yes

Metric / basis

Average, median, high/low and quartile Net Sales, plus profit-and-loss detail (through EBITDAR) for two subsets of reporting restaurants: Freestanding Restaurants and Convenience & Gas (C&G) Restaurants

Reporting period

Full fiscal year 2023 (January 1 - December 31, 2023)

Sample

56 Reporting Freestanding Restaurants (Net Sales), 24 of which also provided P&L data; separately, 53 Reporting C&G Restaurants (Net Sales), 11 of which also provided P&L data. Excludes seasonal, non-drive-thru, Co-Brand and Captive Restaurants and company-owned units.

Reported average

$1,299,627

Reported median

$1,222,089

Owner income is not captured. Gross sales and EBITDA are not owner pay. Results depend on the disclosed metric, sample and period; consult the full filing.

Item 19 performance sourceFDD p.46 ↗

Unit growth: Item 20

Reporting year

2023

Scope

franchised outlets

Starting outlets

210

Year-end outlets

212

Net change

+2

Derivation

ending minus starting outlets

Openings

9

Terminations

6

Non-renewals

1

Other closures

0

Reacquisitions

0

Transfers

13

Transfers are not closures. Net change is ending minus starting outlets for the stated scope and year, or complete openings less terminations, non-renewals, other closures and reacquisitions. Missing inputs stay unknown.

Unit growth sourceFDD p.54 ↗

SBA loan history

Loan activity

0 approvals

Activity window

FY2021-FY2026 YTD; snapshot 2026-06-30

Median SBA loan

Not captured

Median loan window

Not captured

Median loan sample

Not captured

Historical charge-off share

Suppressed: fewer than 10 seasoned loans

Cohort

7(a) FY2010-2019 approvals

Numerator / denominator

0 / 2

Formula

CHGOFF / (PIF + CHGOFF + EXEMPT) × 100

This is a historical loan-level share, not a franchise failure probability or location survival rate. Loan size is not total investment. Other loan statuses are excluded from the seasoned denominator. Activity combines 7(a) and 504 approvals, excluding canceled and not-funded records; this is not a rolling five-year count. FY2024-25 franchise tags are sparse after directory suspension; fewer tagged loans do not establish brand decline. Recent charge-off cohorts are immature.

SBA loans sourceSBA data · Jun 30, 2026 ↗

Questions before you invest

How much does A & W Restaurant franchise cost?

Freestanding Restaurant: $883,256 to $1,573,172; In-line Restaurant (retail space or gas station/convenience location): $413,256 to $1,084,967; Captive Restaurant: $287,368 to $704,763 These are format-specific estimates, not a guaranteed cash requirement. Franchise fee: $15,000 to $30,000 · Extracted Item 5 scalar range, not a universal minimum or maximum; formats, eligibility, discounts and waivers require original-filing review..

Investment sourceFDD p.15 ↗

Franchise fee sourceFDD · page not captured ↗

How much do A & W Restaurant owners make?

Owner income is not captured. Gross sales and EBITDA are not owner pay. Item 19 metric: Average, median, high/low and quartile Net Sales, plus profit-and-loss detail (through EBITDAR) for two subsets of reporting restaurants: Freestanding Restaurants and Convenience & Gas (C&G) Restaurants. Sample: 56 Reporting Freestanding Restaurants (Net Sales), 24 of which also provided P&L data; separately, 53 Reporting C&G Restaurants (Net Sales), 11 of which also provided P&L data. Excludes seasonal, non-drive-thru, Co-Brand and Captive Restaurants and company-owned units.. Period: Full fiscal year 2023 (January 1 - December 31, 2023).

Item 19 performance sourceFDD p.46 ↗

What's the SBA charge-off rate for A & W Restaurant?

Suppressed: fewer than 10 seasoned loans; numerator / denominator: 0 / 2. Historical 7(a) FY2010-2019 approvals; CHGOFF / (PIF + CHGOFF + EXEMPT) × 100, snapshot 2026-06-30. This is not a franchise failure probability.

SBA loans sourceSBA data · Jun 30, 2026 ↗