A & W RESTAURANTS Franchise Startup Cost, Profit Margin, Revenue and Locations
A & W Restaurants is an iconic restaurant fast food chain in the United States of America. For individuals who are considering operating a restaurant fast food chain, taking a closer look at the opportunities which A & W Restaurants offer entrepreneurs and franchisees would do a great good.
In this article, we will be doing a critical examination of the company A & W Restaurants. We will start by looking at the history of the company.
We are also going to look at the franchise fee for an A & W Restaurants franchise and the general startup cost for people seeking to take advantage of the A & W Restaurants franchise opportunity. We will also be taking a look at the franchise agreement and renewal terms for franchisees. We will do a critical examination of the training and supports which the company provides for its franchisees. And finally, in this article, we will let you know how you can open an A & W Restaurants franchise.
Is A & W Restaurants a Franchise?
A & W Restaurants is a franchise. A & W Restaurants is based in the United States of America. The company operates in the restaurant industry and runs a chain of fast food outlets.
A & W Restaurants was founded 99 years ago in 1923 in Lodi, a city in the San Joaquin County in the state of California in the United States of America.
The company was founded by Roy Allen and Frank Wright. Roy Allen was an American entrepreneur.
He was born on September 30, 1882. Roy Allen died on Tuesday, 26th March 1968 at the age of 85. Allen’s wife was Luella Alice Allen.
A & W Restaurants alongside A & W Root Beer was Allen’s most enduring entrepreneurial endeavours.
Frank Wright was an employee of Allen’s who decided to join Allen in a partnership in 1922. However, Frank Wright was bought out the following year. A & W Restaurants started franchising 93 years ago in 1925, 6 years after it was founded.
As a private company, the company is registered as A & W Restaurants, Inc. The company is a subsidiary of A Great America Brand LLC.
The company’s headquarters is located in Lexington, Kentucky, in the United States. The company’s products include chicken, cheese curds, hot dogs, hamburgers and root beer.
The current Chief Executive Officer (CEO) of A & W Restaurants is Kevin Bazner. Today, the company is present in more than 16 countries and has more than 1,200 franchise locations worldwide.
The company’s corporate address is at 1648 McGrathiana Pkwy, Suite 380 Lexington, KY 40511.
How Much Does A & W Restaurants Franchise Cost?
Intending franchisees are required to pay a franchise fee of $30,000 (U.S. dollar). The intending franchisee is also expected to show a liquid capital of $360,000 (U.S. dollar), among other fees that are required to be paid by the franchisee.
A & W Restaurants Franchise Fee
Entrepreneurs who wish to open an A & W Restaurants franchise are required to pay a franchise fee of $30,000 (U.S. dollar). This gives you the right to open an A & W Restaurant and become your own boss. Also required are a royalty fee of 5% of net sales and an advertising fee of 5% of net sales, but 2% for Captive A & W Restaurants.
A & W Restaurants Franchise Startup Cost
The startup cost for A & W Restaurants is a minimum of $778,500 (U.S. dollar) and a maximum of $1.4 million (U.S. dollar).
A & W Restaurants Franchise Training and Supports
A & W Restaurants provides training and support for its franchisees. The training lasts for between 3 to10 days. The training follows an onsite format and is conducted at locations selected by the company. A & W Restaurants also provides support for its franchisees, which includes;
- The company provides local marketing support for its franchisees.
- Franchisees also get support with a grand opening.
- They also support franchisees with site selection.
- A & W Restaurants also provides a toll-free support line for franchisees.
- Franchisees also receive an on-going newsletter on updates and meetings.
A & W Restaurants Franchise Application and Terms of Agreement
The initial franchise agreement for A & W Restaurants franchise is 20 years while that of Captive Restaurants is 10 years. The company provides renewal for franchisees that satisfy their criteria. No renewal is provided for Captive Restaurants.
How Much Does an A & W Restaurants Franchise Make?
The amount of money that can be made as an A & W Restaurants franchisee is not fixed and cannot be stated. But the franchisee can leverage the brand loyalty, growth and success of A & W Restaurants to make good money.
To be successful with this brand and any other business, you must be a person with an entrepreneurial spirit ready to work hard and also be persistence.
How to Open an A & W Restaurants Franchise
To take advantage of the A & W Restaurants franchise opportunity to open a location, the intending franchisee should contact the company on its website at www.awfranchising.com for inquiries and to complete the company’s franchise request form to receive the company’s Franchise Information Report.
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