A&W Restaurants Franchise FDD, Profits, & Costs
A&W Restaurants is a historic brand in American dining, offering a unique franchise opportunity since 1919. As the oldest restaurant franchise in the U.S., A&W is known for its iconic root beer served in frosty mugs, a tradition that started at a roadside stand in Lodi, California. Roy W. Allen and Frank Wright, who formed the brand name A&W, set the foundation for its enduring success.
The franchise began expanding in 1926 and has grown worldwide while maintaining its core values. Headquartered in Lexington, Kentucky, A&W remains a beloved destination for generations. The brand’s ability to adapt through economic challenges, including the Great Depression, showcases its resilience.
Today, A&W continues to evolve by incorporating modern technology like self-service kiosks and a centralized POS system, enhancing the customer experience while staying true to its century-old heritage.
Initial Investment
How much does it cost to start a A&W Restaurants franchise? It costs on average between $299,000 – $1,640,000 to start a A&W Restaurants franchised restaurant.
This includes costs for construction, equipment, inventory, and initial operating expenses. The exact amount depends on various factors, including the type of restaurant you choose, the location, and whether the franchisee chooses to lease or purchase the property.
For more information on the costs required to start an A&W Restaurants franchise, refer to the Franchise Disclosure Document (Item 7).
A&W Restaurants offers three restaurant formats:
| Type of Franchise | Initial Investment Range |
|---|---|
| Freestanding Restaurant | $894,130 to $1,640,034 |
| Endcap Restaurant | $424,130 to $1,129,311 |
| Non-Traditional Restaurant | $301,095 to $727,599 |
The table below provides the detailed estimated initial investment for the Freestanding Restaurant format.
| Type of Expenditure | Amount |
|---|---|
| Real Estate | Not included |
| Professional Fees, Licenses & Permits | $30,000 to $84,000 |
| Building Costs Including Site Work | $500,000 to $869,484 |
| Signs | $70,000 to $87,658 |
| Technology System | $33,230 to $69,851 |
| Furnishings, Fixtures & Equipment | $184,900 to $275,639 |
| Initial Franchise Fee | $15,000 to $30,000 |
| Grand Opening Promotion Deposit | $5,000 |
| Management Training Course Expenses | $3,000 to $10,000 |
| On-Site Team Member Training Expenses | $8,000 to $30,000 |
| Miscellaneous Opening Costs | $6,000 to $12,402 |
| Opening Inventory | $9,000 to $16,000 |
| Additional Funds – 3 Months | $30,000 to $150,000 |
| Total Estimated Initial Investment | $894,130 to $1,640,034 |
Average Revenue (AUV)
How much revenue can you make with a A&W Restaurants franchise? A A&W Restaurants franchised restaurant makes on average $1,001,000 in revenue (AUV) per year.
A&W Restaurants Franchise Disclosure Document
Frequently Asked Questions
How much can a A&W Restaurants franchise owner expect to earn?
The average gross sales for a A&W Restaurants franchise are approximately $1.04 million per location. Assuming a 15% operating profit margin, $1.04 million yearly revenue can result in $156,000 EBITDA annually.
What funding options are available for a A&W Restaurants franchise?
Most franchise buyers in A&W Restaurants’s investment range finance their unit through an SBA 7(a) loan, with some multi-unit operators using SBA 504 loans for real estate. Buyers with rollable retirement funds sometimes use a ROBS structure to reduce debt service. See SharpSheets’ financial model hub for funding guidance.
How long does it take to pay back a A&W Restaurants franchise investment?
Payback periods for franchises in A&W Restaurants’s category typically run 3-7 years, depending on investment level, location performance, and financing structure. Actual payback varies significantly by unit performance and debt service obligations.
Who owns A&W Restaurants?
A&W Restaurants is owned by A Great American Brand, LLC, which is a group of franchisees who purchased the company from Yum! Brands in 2011.
This unique ownership structure means that the brand is 100% franchisee-owned, making it one of the few major restaurant chains that operates under franchisee control.
SharpSheets Editorial Team | sharpsheets.io | Last Updated: June 2026
Disclaimer
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