Franchise FAQ

a and w franchise cost

by Miss Michele West MD Published 2 years ago Updated 1 year ago
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Full Answer

How much does it cost to buy a A&W franchise?

A&W Restaurants Franchise Cost / Initial Investment /A&W. Restaurants Franchise Income. The franchise fee to open an A&W Restaurant is $20,000-$30,000. The total investment ranges from $1.1 million to $1.7 million. A 5-6% royalty fee on monthly receipts is paid to the company.

How much does it cost to open a & W restaurant franchise?

The estimated investment required to open a A & W Restaurants Franchise is between $269,000-$1,213,000. There is an initial franchise fee of $15,000-$30,000 which grants you the license to run a business under the A & W Restaurants name. Breakfast lovers and Beyond Meat fans have another reason to celebrate!

Is A&W All American food a franchise?

Currently, the franchisor operates restaurants and grants licenses to operate restaurants under the “A&W” and “A&W All American Food” trademarks.

Who makes the decisions for your A&W Restaurants franchise?

The A&W Restaurants franchise association board usually makes all the decisions, and everyone in the corporate office still is expected to work in a restaurant once a quarter. This means that they may not lose sight of what is most important for their A&W Restaurants franchise to thrive.

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How much does it cost to franchise an A&W?

A&W Restaurants Franchise Costs & FeesName of FeeLowHighInitial Franchise Fee$15,000$30,000Grand Opening Promotion Deposit$2,500$5,000Management Training Course Expenses$3,000$10,000On-Site Training Expenses$6,000$25,0009 more rows

How Much Is A&W franchise cost in Canada?

Investment. Our strong management combined with lower operating costs will ensure a lucrative business to support your lifestyle. To get started, you need approximately $450,000 in unencumbered cash (cash that is not attached to any loan or debt) depending on the location.

Who owns A&W franchises?

A Great American Brand, LLCA&W RestaurantsAn A&W restaurant in Page, ArizonaProductsHamburgers, chicken, hot dogs, root beer, Root beer floats, cheese curds, soft serve, and milkshakesRevenue$330 million (2020)OwnerA Great American Brand, LLCNumber of employeesapprox. 35,000 (2019)12 more rows

How much is the average franchise fee?

between $25,000 to $50,000Franchise fees are typically between $25,000 to $50,000 on average. 2) Startup Costs: These are the expenses you'll incur to get your new business open and operating. Initial investment costs vary widely from franchise to franchise.

How much is it to buy a Taco Bell franchise?

Costs overview Franchising fee: It costs between $25,000 and close to $50,000 for the initial franchise fee. This, too, will vary depending on the details of your specific Taco Bell franchise. Net worth: The current net-worth requirement is around $1.5 million worth of assets.

How much does it cost to buy a Burger King franchise?

Burger King Franchise Cost /Initial Investment/ Burger King Franchise. The franchise fee is $50,000, and requires a total investment of anywhere between $316,100 and $2,660,600. Franchise agreements include an additional royalty fee of 4.5%. Franchise incomes vary by location.

How much does a Wendy's franchise cost?

$2,000,000 to $3,700,000The estimated total investment required to begin operation of a new restaurant normally ranges from $2,000,000 to $3,700,000. Will I be assigned an exclusive territory? Wendy's does not currently provide exclusive areas to franchisees. The franchise agreement is issued for the specific restaurant location only.

Is A&W more popular in Canada?

The Canadian operation is privately held and is based in North Vancouver, British Columbia. In 2022, A&W was Canada's second-largest fast food restaurant burger chain with 1,029 franchises, after McDonald's with 1,452 franchises.

What is A&W stand for?

Allen partnered with former Lodi employee Frank Wright. They leased their first two Root Beer stands to other operators so they could expand into the larger city of Sacramento. This was around the same time the partners coined the new name A&W®, “A” for Allen & “W” for Wright.

What is Starbucks franchise fee?

Initial Start-Up Funding The average cost to license a Starbucks store is $315,000. You'll also need $700,000 in liquid assets to be considered.

How much is Mcdonalds franchise fee?

$45,000Those approved to launch new McDonald's franchises can expect to shell out between $1,314,500 and $2,306,500 to get the restaurants up and running. Owners pay an initial franchise fee of $45,000. The costs can vary depending on the region of the country and store type as well as the restaurant's size.

How do franchise owners get paid?

How do franchise owners get paid? Franchise owners can pay themselves a salary or depending on their business entity, they may be able to take a draw from their accumulated equity.

Who owns A&W in Canada?

By 1966, A&W Food Services had opened over 200 drive-in restaurants and was a hit with baby boomers and their families. In 1972, A&W Food Services was acquired by Unilever Canada Limited. Since that time, A&W has always been owned and operated in Canada independently from A&W operations in the United States.

Is A&W a Canadian franchise?

History. Since the first drive-in opened in Winnipeg in 1956, A&W has grown to become Canada's fastest-growing burger quick-service restaurant (QSR), with over 950 restaurants and over $900 million in sales from coast to coast.

How many A&W franchises are there in Canada?

1,029A&W (Canada)TypePrivate, with publicly traded income fundFounded1956 in Winnipeg, Manitoba, CanadaHeadquartersNorth Vancouver, British Columbia, CanadaNumber of locations1,029 (2022)Key peopleSusan Senecal (CEO & President)9 more rows

How much does a Wendy's franchise cost?

$2,000,000 to $3,700,000The estimated total investment required to begin operation of a new restaurant normally ranges from $2,000,000 to $3,700,000. Will I be assigned an exclusive territory? Wendy's does not currently provide exclusive areas to franchisees. The franchise agreement is issued for the specific restaurant location only.

A&W Restaurants Franchise Opportunities

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How to open a A&W Restaurants franchise?

Ensure you have adequate capitalization. In order to open the A&W Restaurants fast food franchise, you must have a net worth of more than $1,000,000.

What is the A&W brew bar?

The A&W Brew Bar will serve beverages such as A&W Root Beer Blends , Fruit Smoothies, Shakes, Cold Brew Coffee, and Frozen Cold Brew made with all-natural ingredients.

When was the first A&W drive in?

The first A&W drive-in restaurant opened in Winnipeg in 1956.#N #An instant hit, A&W expanded to build restaurants across#N#Canada. We’ve proudly served great-tasting burgers,#N#hand-crafted onion rings and frosted mugs of famous A&W#N#Root Beer to millions of happy customers.

What is the A&W franchise?

A&W is one of the earliest, maybe the earliest food franchise company in the world.

How much does it cost to franchise an A&W restaurant?

The franchise fee to open an A&W Restaurant is $20,000-$30,000. The total investment ranges from $1.1 million to $1.7 million. A 5-6% royalty fee on monthly receipts is paid to the company.

What is A&W fast food?

Today, A&W has locations all over the world, serving all-American fast food, such as a variety of hamburgers and French fries, hot dogs, chicken sandwiches, kid’s cruisers, and of course, its world-renowned delicious root beer. Start your business!

When did A&W start?

A&W began in 1919 with the opening of its first restaurant in Lodi, California, when Roy Allen teamed with Frank Wright, A&W, combining Wright’s root beer business with the restaurant business in a way that has endured and grown ever since. Allen and Wright may be the first successful food-franchisers in the world, having begun franchising A&W root beer in 1921. By 1960 A&W had grown to 2,000 locations, and in 1971, A&W root beer and cream soda were distributed separately, to grocery stores worldwide, and today is the world’s Number One-selling root beer. In 2002, A&W Restaurants were acquired by Yum! Brands, Inc. In 2011, Yum! sold A&W to A Great American Brand LLC.

When did A&W start franchising?

Allen and Wright may be the first successful food-franchisers in the world, having begun franchising A&W root beer in 1921. By 1960 A&W had grown to 2,000 locations, and in 1971, A&W root beer and cream soda were distributed separately, to grocery stores worldwide, and today is the world’s Number One-selling root beer.

Who owns A&W restaurants?

A&W Restaurants are one of the several highly successful restaurant chains owned by Yum! Brands Inc., in the same family as KJC, Taco Bell and Pizza Hut. A&W seeks franchisees for either freestanding or mall interior restaurants. The traditional, retro A&W restaurant design continues to serve as a strength for the brand, attracting loyal customers year after year, evoking warm feelings and memories of bygone eras. Franchisees receive full support from the company in assuring their success.

What is a wing zone?

Wing Zone is a fast-casual food franchise that has won the hearts of wing lovers and flavor fanatics across the globe. Their menu has something for everyone, and with a warm and friendly environment, Wing Zone tops the lunch, dinner, and late-night crowds. Own a Wing Zone franchise today!

What is A&W franchise?

A&W franchise offers a quick-service restaurant featuring A&W Rootbeer and Burgers.

How much does an A&W franchise make?

Franchise revenue and profits depend on a number of unique variables, including local demand for your product, labor costs, commercial lease rates and several other factors. We can help you figure out how much money you can make by reviewing your specific situation. Please unlock this franchise for more information.

How many franchise locations do they have?

As of the 2020 Franchise Disclosure Document, there are 565 franchised A&W locations in the USA.

When did they begin franchising?

They began franchising in 1950. The average Burgers franchise began franchising in 2008.

What does it mean to find the best franchise?

Finding the best franchise means comparing several brands to determine the ideal fit for you.

What is A&W Xchange?

The A&W Xchange, a private intranet site developed exclusively for the use of A&W operators and Head Office personnel, provides an outstanding vehicle for daily, real-time communication within the A&W family. You will also have access to a toll-free line for use in contacting Head Office.

What is an A&W restaurant manager?

As your A&W restaurant settles into its regular routine, A&W business managers provide ongoing guidance with operational aspects of your business such as staffing, cost management and local marketing. Our business managers are an extraordinarily experienced team of senior managers whose job is to help you succeed. You'll also be invited to attend regular regional meetings and national conventions, where you'll gain new knowledge and share ideas with senior management and other A&W franchisees. In no time, you'll become a part of our energetic, results-oriented A&W team.

How long does it take to train at A&W?

Training#N#Before your restaurant opens, we provide six weeks of intensive in-store training for you and, in some instances, your key management people. The training takes place at an established A&W restaurant, usually in the same province where the restaurant will be located. From being shown the secrets of battering and breading A&W's handmade onion rings, to learning detailed information about how to create an efficient operation and positive work environment, you'll gain the knowledge and the confidence to achieve success in your own restaurant.

Does A&W provide financing?

Other Financing Source (s): A&W does not provide financing, but we have existing and strong relationships with Canada's leading lenders that will assist you in achieving your ideal financing arrangements.

Who started A&W Root Beer?

In 1919, our founder Roy Allen set up a roadside drink stand in Lodi, California to introduce a new beverage called "root beer" at a parade honoring returning World War I veterans. With his creation an instant success, Allen and partner Frank Wright named the beverage we know today as A&W Root Beer. Allen and Wright started franchising roadside stands, making A&W Restaurants the oldest franchise restaurant chain in the country.#N#We are proud to stick to our roots and honor the past, while still growing with the changing times. We are committed to making it right, every time. Laughter, simple pleasures, and celebrations are all vital to A&W.#N#Ask around, everyone has an A&W memory: first dates, baby mugs of Root Beer, high school sweethearts, and that perfect burger.#N#We're more than just a place for a frosty mug of Root Beer and a great meal.#N#We're A&W Restaurants, and we're inviting you to be part of something bigger than just owning a business. We're inviting you to be part of the A&W family. Create your very own A&W memories for yourself and your community.#N#Consider this a unique opportunity to join a 96-year-old iconic American brand being run with the entrepreneurial spirit of a startup company. Since December 2011, when A&W was purchased by a partnership of domestic and international franchisees, A&W set its sight on becoming a world class franchise organization.#N#Over the last 3 years, we've invested our resources in defining a competitive brand strategy that impacts all consumer touch points and has us well-positioned to capitalize on our heritage while remaining relevant to today's consumer.#N#From new menu launches like our delicious Hand-Breaded Chicken Tenders and right-sized Mini Polar Swirls to our flexible localized marketing strategies, we are committed to innovation that will bring us another successful 101 years.

Can you own a franchise if you are absent?

Absentee ownership of franchise is NOT allowed.

Options available to franchisees

The A&W® restaurant franchise has been serving All American food and fun since 1919. The passion, teamwork and smiles of A&W restaurant teams make customers feel like family – and keep them coming back again and again.

A&W Restaurants is currently accepting inquiries from the following states

Interested parties should have at least $0 in liquid capital to invest.

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Who owns A&W franchise?

Franchise Description: A&W Restaurants, Inc. is the franchisor. A&W is a wholly owned subsidiary of A Great American Brand, LLC. Currently, the franchisor operates restaurants and grants licenses to operate restaurants under the “A&W” and “A&W All American Food” trademarks. The franchisee will operate a quick-service restaurant featuring A&W Root Beer and other approved items in a new or converted freestanding building (freestanding restaurant), a new or converted space connected to or in line with another retail space or a gas station or convenience location (an inline restaurant) or a new or converted space in a captive location (a captive restaurant).

How long is a franchise agreement?

The initial term of the franchise agreement for captive restaurants is 10 years. If franchisees operate a freestanding or in-line restaurant, are in good standing, and satisfy the renewal criteria in the Franchise Agreement, they may renew for two additional renewal terms of five years each. There is no renewal or extension for a captive restaurant.

What is a franchisee site?

The site means a location the franchisee selects and the franchisor approves , where the franchisee will operate the restaurant. If franchisees operate a freestanding or inline restaurant, the Franchise Agreement will designate a trading area consisting of the smaller of (a) a 1.5 mile radius around the restaurant and (b) whatever radius around the restaurant includes a combined number of 30,000 residing and working people, within which the franchisor will not, so long as franchisees are in compliance with the Franchise Agreement, establish or grant a franchise for A&W restaurants that are not located at so-called “captive locations.” If franchisees operate a captive restaurant or are the transferee of a co-brand restaurant, they will not receive a trading area.

How long does A&W training last?

This will be facilitated by two A&W field trainers at the restaurant and may last 5 to 10 days.

Does a franchisor guaranty franchisees?

Financial Assistance: The franchisor does not offer, directly or indirectly, any arrangements to franchisees for financing the initial investment or the continuing operation of their A&W business. The franchisor does not guaranty a franchisee’s note, lease or obligation.

Do franchisees have to supervise the operation of a restaurant?

Obligations and Restrictions: Franchisees are not required to actively supervise the operation of the restaurant on premises, although active on premises supervision is strongly encouraged. If franchisees are an individual, franchisees must either serve as or designate a restaurant general manager.

Does Franchise Direct sell your information?

Franchise Direct's reputation for integrity in the franchise industry has been established over our 20+ years in business. We NEVER sell your information or share it with anyone other than the companies from which you have requested information. Please view our privacy policy.

About Franchise

A&W fast food franchise is experiencing a comeback in popularity with average sales increases of almost 33%

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Complete the form below to get more information, including estimated costs to open and operate this franchise.

What is the franchise fee?

What you need to know: Found in Item 5 of the FDD, this may be a flat fee, or may vary based on territory size, experience, or other factors.The franchise fee is an up-front (one-time) cost that a new franchisee pays to the franchisor. This fee is usually due at the signing of the franchise agreement and covers the right to use the franchisor's trademarks, name, and related business systems.

How long is a franchise agreement?

What you need to know: Franchise terms are typically anywhere from 5 to 20 years in length, but are sometimes instead dependent on factors such as the term of your lease. Once your term is up, you may have the option to renew your agreement, typically for a smaller fee than the original franchise fee.

What does absentee ownership mean?

Definition: Absentee ownership means that the franchisee does not actively work in the franchise business or manage day-to-day operations.

What is included in the initial investment?

What you need to know: The initial investment includes the franchise fee, along with other startup expenses such as real estate, equipment, supplies, business licenses, and working capital. This is outlined in a chart in Item 7 of the FDD, showing a range of possible costs from low to high.

What is the purpose of royalty fee?

What you need to know: This may also be called advertising fee, marketing fee, brand fund fee, and more, but the basic purpose is the same-- to support promotion of the brand systemwide. As with the royalty fee, it is detailed in Item 6 of the FDD, and can be a percentage of weekly or monthly gross sales or a weekly, monthly, or annual fee.

What is net worth?

What you need to know: Net worth is the value of a person's assets minus liabilities. Assets include cash, stocks, retirement accounts, and real estate. Liabilities include items like mortgages, car payments, and credit card debt.

Do franchisors have in-house financing?

Some franchisors offer in-house financing, while others have relationships with third-party financing sources to which they refer qualified franchisees.

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