A&W Restaurants charges a royalty fee of 5.0% of gross sales (2024 FDD). This ongoing fee is typically paid weekly or monthly to the franchisor for continued use of the brand and support systems.

The total ongoing fee rate for a A&W Restaurants franchise is approximately 10.0% of gross sales (2024 FDD). This includes the royalty fee, a 5.0% marketing/advertising fund contribution, a $378/month technology fee, and other recurring charges.

A&W Restaurants has been involved in 0 litigation cases over the past 3 years (2024 FDD). There are no class action lawsuits pending.

No, the A&W Restaurants franchisor has no bankruptcy filings in their disclosure history (2024 FDD).

A&W Restaurants offers exclusive territory rights to its franchisees (2024 FDD). The franchise agreement includes encroachment protection, preventing the franchisor from placing another unit in your territory. Online sales rights are shared between the franchisor and franchisee.

A&W Restaurants currently operates 429 locations (2024 FDD) (427 franchised, 2 company-owned). The system grew by 1.2% over the past year. The 3-year compound annual growth rate is 0.6%.

The 1-year franchisee turnover rate for A&W Restaurants is 1.9% (2024 FDD). This includes closures, terminations, non-renewals, and transfers. A lower turnover rate generally indicates higher franchisee satisfaction and system stability.

According to the A&W Restaurants FDD Item 19 financial performance representation (2024 FDD), the median gross sales per unit is $1.3M (average: $1.3M).

The initial franchise agreement term for A&W Restaurants is 20 years (2024 FDD). Franchisees can renew 2 times for 5-year periods. The total potential term is 30 years.

A&W Restaurants's post-termination non-compete clause restricts former franchisees from operating a competing business for 2 years within 10 miles of the former location (2024 FDD).

No, A&W Restaurants's franchise agreement does not require mandatory arbitration (2024 FDD). Disputes may be resolved through litigation.

A&W Restaurants provides 115 hours of initial training over approximately 2 weeks (2024 FDD). The cost of training is covered by the franchisor (travel and lodging are typically the franchisee's responsibility). Ongoing field support is provided on a as-needed basis.

Yes, A&W Restaurants provides site selection assistance to help franchisees find the right location (2024 FDD). The franchisor also provides technology support and systems.