5/10

Franchimp Summary Rating

2 /10
Higher than 85% of peers

Franchise Summary

Description
The franchised business being offered is A&W, restaurants offering draft A&W® Root Beer and food products such as hamburgers, chicken tenders, hot dogs, soft serve ice cream and fries.
Company Background
A&W Restaurants is a quick-service restaurant that specializes in A&W Root Beer and other approved items.
Franchise Opportunity
Limited time and on-the-go diners need a fast, reliable option for quality food. A&W Restaurants are the perfect solution for busy people on the go. Our restaurants are quick service, so you can get in and out without having to wait long. Plus, we offer a wide variety of menu items that will satisfy everyone's taste buds. A&W Restaurants are the perfect place to grab a bite when you're short on time. We have locations all over the country, so you're sure to find one near you. Plus, our menus include something for everyone, so there's no need to compromise on taste or nutrition.
Corporate Structure
The franchisor is A&W Restaurants, Inc., a Michigan corporation, originally incorporated in California in 1950, with its principal office at 1648 McGrathiana Parkway, Suite 380, Lexington, KY 40511. It is a wholly owned subsidiary of A Great American Brand, LLC.

Earnings Transparency

7 /10
This Franchise discloses slightly more information about the financial performance of their franchisees compared to other franchises in the same industry

Why do some franchises disclose more than others?
There are many reasons why a brand may choose to not include item 19 on their FDD: they could be a newer franchise, they may be in a unique industry that is not super profitable or well-known yet

Financial Performance of "Freestanding Restaurants with Drive-Thrus" Units

Average Revenue Per Unit

Compared vs. QSR Industry

$991,722 / unit

Franchise Type: Freestanding Restaurants with Drive-Thrus

Average Revenue During 2019

$991,722
$369,349
Industry Low
$2,179,984
Industry High

Average Gross Profit Per Unit

Compared vs. QSR Industry

$471,507 / unit

Franchise Type: Freestanding Restaurants with Drive-Thrus

Average Gross Profit During 2019

$471,507
$318,704
Industry Low
$1,037,519
Industry High

Financial Performance of "C&G Restaurants with Drive-Thrus" Units

Average Revenue Per Unit

Compared vs. QSR Industry

$597,156 / unit

Franchise Type: C&G Restaurants with Drive-Thrus

Average Revenue During 2019

$597,156
$369,349
Industry Low
$2,179,984
Industry High

Average Gross Profit Per Unit

Compared vs. QSR Industry

$318,704 / unit

Franchise Type: C&G Restaurants with Drive-Thrus

Average Gross Profit During 2019

$318,704
$318,704
Industry Low
$1,037,519
Industry High

Financial Performance of "Captive Restaurants with Full Menu" Units

Average Revenue Per Unit

Compared vs. QSR Industry

$664,671 / unit

Franchise Type: Captive Restaurants with Full Menu

Average Revenue During 2019

$664,671
$369,349
Industry Low
$2,179,984
Industry High

Franchise Types Available

# Type Investment Fees

Employee Contact Database

# Name Position Phone Number Email Address

Distribution of A&W Franchisees

A&W Franchise System Development in 2024

Historical A&W System Growth

FAQ

How much investment do I need to start my own A&W business?
Franchisees typically require at least $894,434 to $1,639,906 investment to get their A&W business started
What are the initial franchise fees for A&W?
Franchisees typically need to pay at least $15,000 in fees directly to A&W in order to earn the right to launch their business
How much money can I make with a A&W franchise? What are the average revenues for a typical A&W business?
We estimate that the average revenue of an individual A&W unit is approximately $991,722. We based this on Item 19 in franchise disclosure document
How long do I need to commit to running a A&W unit? What is my contractual commitment?
A&W franchisees are typically required to sign up to a 20 year contract initially. The renewal length is 5 years. You can of course exit early but don’t expect to get any refund!

Accessibility

2 /10
The Franchisor's investment costs ranges from $894,434 to $1,639,906 which is Much Higher than the $0 to $0 average in the QSR industry
What determines the investment cost?
Item 7 of the Franchise Disclosure Document lays out the full list of initial investment costs, including the fee payable to the franchisor, security deposits, equipment, professional fees etc

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