A&W All American Food Franchise
Audited FinancialsRisk Score
Pending analysis
Investment Range
$298,899 - $1,639,906
Franchise Fee
$12,500
Min Cash Required
$30,000
Total US Locations
429
Business Summary
A&W Restaurants, Inc. operates quick-service restaurants that feature A&W Root Beer and other menu items like hamburgers, chicken tenders, hot dogs, soft serve ice cream, and fries. These restaurants can be freestanding buildings with drive-thrus, in-line spaces connected to other retail or convenience stores with drive-thrus, or captive locations such as malls or other shop-in-shop setups. A&W Restaurants also requires franchisees to offer delivery, catering, and online ordering services to customers.
Corporate History
A&W Restaurants, Inc. was initially incorporated in California on April 28, 1950, and then in Michigan on February 18, 1982, through a subsequent merger and name change. The company currently operates and grants franchisees the right to open A&W Freestanding, In-line, and Captive Restaurants in the United States and internationally. In August 2013, A&W Restaurants, Inc. sold its rights to the A&W brand outside of the Americas, the Caribbean, U.S. territories, and U.S. military bases to A Great American Brand International Pte. Ltd.
Financial Overview
Investment Range
$298,899 - $1,639,906
Franchise Fee (Low)
$12,500
Franchise Fee (High)
$30,000
Minimum Cash Required
$30,000
Royalty %
5%
Marketing %
5%
Equipment Costs (Low)
$172,399
Equipment Costs (High)
$433,020
Working Capital
$90,000
Audited Financials
Yes
Offers Financing
No
Audit Opinion
Unqualified opinion
Financial Health Notes
A Great American Brand, LLC, the parent company of A&W Restaurants, Inc., is in good financial health. As of December 31, 2024, the company reported total assets of $32,011,101 and members' equity of $22,099,728. The independent auditor provided an unqualified opinion on the consolidated financial statements, indicating that they present fairly in all material respects. The company maintains significant cash and cash equivalents, and has a strong revenue stream from U.S. royalties and franchise fees. There are no mentions of going concern issues or significant financial difficulties.
Financing Details
A&W Restaurants, Inc. does not offer any direct or indirect financing arrangements for the initial investment or ongoing operation of an A&W business. The company does not guarantee any franchisee notes, leases, or other obligations.
Performance Metrics
Total US Locations
429
Franchised Units
427
Corporate Units
2
Avg Square Footage
1,918
Legal & Compliance Analysis
Recent Litigation
No
Bankruptcy
No
Litigation Summary
A&W Restaurants, Inc. has no pending or concluded litigation that is required to be disclosed in this Franchise Disclosure Document.
Bankruptcy History
A&W Restaurants, Inc. has no bankruptcy information required to be disclosed in this Franchise Disclosure Document.
Agreement Terms
Initial Term
20 years
Renewal Term
5 years
Renewal Conditions
To renew their franchise agreement, A&W Restaurants, Inc. franchisees must provide written notice between six and nine months before the current term ends. At the time of notice and renewal, the franchisee must not be in default of any agreements with A&W Restaurants, Inc. or its affiliates and must have satisfied all monetary obligations. Franchisees (and owners, if applicable) must sign a general release of claims and provide evidence of their right to possess the restaurant premises for the renewal term. They must also complete any required renovations or modernizations to meet current brand standards, ensure their Restaurant General Manager and other designated staff complete required training at their expense, pay a $2,500 renewal fee, and provide requested financial and other information. Finally, they must sign A&W Restaurants, Inc.'s then-current franchise agreement, which may have materially different terms.
Training & Support Program
Franchisor Assistance
Before a new restaurant opens, A&W Restaurants, Inc. helps with designating the trading area, optionally assisting in site evaluation, and approving or rejecting proposed sites and leases. It provides concept design drawings and written specifications for equipment, fixtures, and signage. The franchisor conducts a final inspection before opening and provides a Management Training Course through AW University for up to three managers at no cost for the course itself, though franchisees cover related expenses. Additionally, A&W Restaurants, Inc. sends two representatives for at least five days before opening to assist with equipment checkout, inventory, advertising plans, scheduling, and training. After opening, A&W Restaurants, Inc. provides ongoing advice, develops advertising and sales promotion programs (managed by the A&W Marketing Committee), and sends updates through the Operations Manual. It also furnishes specifications for required products and services and inspects restaurant operations, including food safety and standards review audits.
Initial Training Hours
123
Training Location
A&W's Restaurant Support Center in Lexington, Kentucky and A&W's company-owned Restaurant in Richmond, Kentucky
Ongoing Support
After opening, A&W Restaurants, Inc. provides continuing advice on restaurant operations and develops advertising and sales promotion programs through the A&W Marketing Committee. The franchisor sends information on improvements and developments via periodic updates to the Operations Manual and furnishes specifications for required products and services. It also inspects restaurant operations, including food safety and standards review audits. Additional in-person or online training courses may be offered or required for restaurant management teams and above-store managers, and A&W Restaurants, Inc. may provide additional on-site training or assistance for a fee.
Franchise Requirements
Ideal Candidate Profile
A&W Restaurants seeks franchisees who, if they are an individual, will either serve as or designate a Restaurant General Manager. An entity franchisee must designate a Restaurant General Manager. The Restaurant General Manager, who holds management responsibility for the A&W Restaurant, must exercise on-premises supervision and personally participate in, and be devoted to the full-time, day-to-day direct operation of the Restaurant. Proposed Restaurant General Managers must satisfy A&W's educational and business standards, including requisite prior restaurant management and/or team leadership experience. While active on-premises supervision by the franchisee is strongly encouraged, it is not strictly required. Candidates are evaluated based on their work experience and aptitude, financial background and qualifications, character and credit reputation, ability to devote adequate time and best efforts to managing the Restaurant, and residence in the locality of the Restaurant. Owners with a 10% or greater equity interest in a business entity franchisee are required to sign a personal guarantee of performance.
Industry Experience Required
No
Management Experience Required
No
Sales Experience Required
No
Technical Skills Required
No
Operational Details
Location Type
Retail
Owner Participation
Supervisory
Territory Type
Protected
Territory Size Requirements
A&W Restaurants, Inc. designates a protected trading area for Freestanding or In-line Restaurants. This territory is defined as the smaller of a 1.5-mile radius around the restaurant or a radius that includes a combined total of 30,000 residing and working people. Captive Restaurants or transferees of Co-Brand Restaurants do not receive a trading area.
Staffing Notes
A&W Restaurants encourages active on-premises supervision by the franchisee, but it is not strictly required. Each A&W Restaurant must employ a Restaurant General Manager and one other manager devoted to the full-time, day-to-day direct operation of the restaurant. These two managers are required to attend and complete the Management Training Course to A&W's reasonable satisfaction. Before attending, each attendee must be certified as a Food Safety Manager (e.g., ServSafe or other ANSI-rated program). The Management Training Course lasts between 8 and 14 days and is provided through AW University at A&W's Restaurant Support Center in Lexington, Kentucky, and at A&W's company-owned training restaurant in Richmond, Kentucky. The initial course for up to 3 trainees is free, but the franchisee is responsible for training materials, labor, compensation, insurance, travel, and living expenses. If the General Manager or other designated manager fails to complete training, the restaurant may be prohibited from opening, or the franchise agreement may be terminated. Upon the death, disability, or termination of employment of the General Manager, the franchisee must immediately notify A&W and designate a successor within 10 days, who must then complete the Management Training Course. In addition to managers, A&W Restaurants requires all Team Members (staff) to complete digital training modules (approximately 8 hours) on A&W's TalentLink platform. After digital training, all Team Members must attend 5 to 10 days of on-site training at the franchisee's restaurant prior to opening, facilitated by two A&W Field Trainers. The franchisee is responsible for all costs associated with this on-site training, including supplies, uniforms, salaries, and food/labor for Friends and Family practice events. If a franchisee is opening a second or subsequent A&W Restaurant, A&W may require them and/or certain personnel to complete a multi-unit training program, with associated fees and expenses borne by the franchisee.