Franopolis

    A&W Restaurants, Inc.

    Franchise research report · reviewed 2026 disclosure data

    Reviewed sources
    Franchising since
    1925
    Source: franchise.org
    Headquarters
    Lexington, KY United States
    Source: franchise.org

    A&W Restaurants franchise serves up classic American fare including root beer floats, burgers, and hot dogs with a nostalgic drive-in experience that has attrac

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    Headline figures

    A&W Restaurants, Inc. quick facts

    How much does it cost to open an A&W Restaurants, Inc. franchise?
    The A&W Restaurants, Inc. Franchise Disclosure Document reports separate estimated initial investments by format: $894,130–$1,640,034 for total: $894,130 - $1,640,034 (does not include real estate costs) (2026 FDD, Item 7, PDF p. 15); $424,130–$1,129,311 for total: $424,130 - $1,129,311 (does not include real estate costs) (2026 FDD, Item 7, PDF p. 16). These formats are not combined. Each is the franchisor's disclosed estimate, not a quote. Details
    What is the A&W Restaurants, Inc. initial franchise fee?
    The disclosed initial franchise fee for a standard single unit is $30,000 (2026 FDD, Item 5, PDF p. 9). Other fee options (for example multi-unit or conversion) are listed separately in the report. Details
    Does A&W Restaurants, Inc. disclose financial performance (Item 19)?
    Yes. The A&W Restaurants, Inc. FDD includes an Item 19 financial performance representation (2026 FDD, Item 19, PDF p. 47). Figures apply only to the locations and period each one covers. Details
    Is A&W Restaurants, Inc. a good franchise to buy?
    Franopolis does not rate or recommend franchises. From the reviewed FDD: Item 19 includes financial performance figures; check which locations and period they cover; Item 20 lists outlet openings, closures and transfers; Item 6 includes a brand or advertising fund contribution on top of royalty; Item 20 also lists current and former franchisees you can contact. Review the full FDD with a franchise attorney and accountant before deciding.

    From reviewed FDD figures only. Not a recommendation or projection.

    What the disclosures show

    1. 1The 2026 FDD (Item 7) estimates opening costs separately by format: $894,130 – $1,640,034 (TOTAL: $894,130 - $1,640,034 (Does not include real estate costs)); $424,130 – $1,129,311 (TOTAL: $424,130 - $1,129,311 (Does not include real estate costs)); several initial fee options apply.
    2. 2Item 19 covers 11 separate groups: other measures for 15 Franchised restaurants; other measures for 59 Franchised restaurants; other measures for 15 Franchised restaurants; other measures for 15 Franchised restaurants; other measures for 14 Franchised restaurants; other measures for 13 Franchised restaurants; other measures for 52 Franchised restaurants; adjusted operating results for 17 Franchised locations; other measures for 13 Franchised restaurants; other measures for 13 Franchised restaurants; other measures for 13 Franchised restaurants. They are not combined.

    From reviewed FDD figures only. Not a recommendation or projection.

    Franchises under $500kOther brands whose disclosed Item 7 low end fits this budget.

    A&W Restaurants, Inc. head-to-head

    Closest peers in the same subcategory, side by side from reviewed FDD figures. Not a ranking or recommendation.

    A&W Restaurants, Inc.VSLittle Caesars
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    A&W Restaurants, Inc.VSWingstop
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    A&W Restaurants, Inc.VSSubway
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    A&W Restaurants, Inc.VSSonic Drive-In
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    Costs · Items 5–7

    What does it cost to open?

    Estimated opening costs and the fees payable to the franchisor.

    Startup Investment — Item 7

    Range across 2 single-unit formats

    2026 FDD · Item 7

    Formats disclosed in Item 7 (2)

    Each format has its own total. The total depends on the format you choose.

    • $424,130 - $1,129,311 (Does not include real estate costs)PDF p. 16$424,130 – $1,129,311
    • $894,130 - $1,640,034 (Does not include real estate costs)PDF p. 15$894,130 – $1,640,034

    Standard single-unit franchise fee

    2026 FDD · Item 5 · PDF p. 9
    Discounted and multi-unit options are separate; see all fees.

    Ongoing Fees — Item 6

    Selected recurring charges; payment bases and conditions remain attached to each fee.

    21 reported fees, each with its payment basis, are listed below; they haven't been sorted into recurring, initial and occasional groups yet.

    Financial Performance — Item 19

    What results are disclosed—and for which locations?

    11 separate populations, shown apart. Revenue is not owner income.

    15 locations

    Other measures · 15 locations

    Who is counted
    Freestanding drive-thru Second Quartile (15 Restaurants)
    Excluded
    Seasonal21,freestanding without drive-thru38,C&G without drive-thru22,co-brand199,captive16,company-owned2 excluded.
    Method
    Unaudited franchisee submitted Net Sales, excludes local/state sales taxes.

    These groups are never combined. Adjusted company-owned operating results cannot be divided by franchised revenue to calculate a franchisee profit margin.

    Outlet Changes — Item 20

    How has the outlet count changed?

    Coverage not stated in the reviewed record · counts as of year end of each year.

    2026 FDD · Item 20 ·

    Questions to investigate

    Prompts based on what this brand's reviewed disclosures do and don't show — not conclusions. Join free as a member to save questions to your research.

    For the franchisor

    • Which line items in the 2026 Item 7 estimate ($424,130 – $1,640,034) vary most by market, and why?

    • Which initial fee option would apply to my situation, and what conditions or discounts affect it?

    • Which locations are included in the Item 19 figures, and which were excluded?

    • Is a territory available in my area, and how is it defined in my agreement?

    For current and former owners

    • How did your actual startup costs and timeline compare with the Item 7 estimate?

    • How many hours a week do you work in the business, and in what role?

    • How do your results compare with the Item 19 figures, and what explains the difference?

    • What support from the franchisor has been most and least useful?

    For your advisors

    • Ask a franchise attorney to review the territory, renewal, transfer and termination terms.

    • Ask an accountant to build a cash-flow plan using your own assumptions, not the franchisor's.

    Sources & vintage history

    Every displayed fact is retained with its disclosure vintage, item, page, and reviewed status. Prior vintages remain on file rather than being overwritten.

    Citations (2026 FDD)

    1. [1]Standard initial franchise fee — Item 5 · PDF p. 9
    2. [2]Item 19 — Locations counted not stated in the reviewed record — Freestanding drive-thru Second Quartile (15 Restaurants) · PDF p. 47
    3. [3]Item 19 — Locations counted not stated in the reviewed record — Freestanding drive-thru All Reporting Freestanding Restaurants (59 Restaurants) · PDF p. 47
    4. [4]Item 19 — Locations counted not stated in the reviewed record — Freestanding drive-thru Third Quartile (15 Restaurants) · PDF p. 47
    5. [5]Item 19 — Locations counted not stated in the reviewed record — Freestanding drive-thru Fourth Quartile (15 Restaurants) · PDF p. 47
    6. [6]Item 19 — Locations counted not stated in the reviewed record — Freestanding drive-thru First Quartile (14 Restaurants) · PDF p. 47
    7. [7]Item 19 — Locations counted not stated in the reviewed record — Convenience/gas station drive-thru First Quartile (13 Restaurants) · PDF p. 48
    8. [8]Item 19 — Locations counted not stated in the reviewed record — Convenience/gas station drive-thru All Reporting C&G Restaurants (52 Restaurant… · PDF p. 48
    9. [9]Item 19 — Locations counted not stated in the reviewed record — 17 of59 reporting freestanding drive-thru restaurants providing P&L · PDF p. 48; PDF p. 49; PDF p. 50
    10. [10]Item 19 — Locations counted not stated in the reviewed record — Convenience/gas station drive-thru Second Quartile (13 Restaurants) · PDF p. 48
    11. [11]Item 19 — Locations counted not stated in the reviewed record — Convenience/gas station drive-thru Third Quartile (13 Restaurants) · PDF p. 48
    12. [12]Item 19 — Locations counted not stated in the reviewed record — Convenience/gas station drive-thru Fourth Quartile (13 Restaurants) · PDF p. 48

    "PDF p." is the page in the PDF file; "printed p." is the number printed on the FDD page.

    Territory & operations

    442 addresses in Franopolis's imported location list. Coverage may differ from Item 20 outlet counts.

    These are contract disclosures, not confirmation that any territory is currently available.

    Legal & agreement

    Franchisor financial statements

    Fiscal yearMeasureReported value
    2024current portion of contract liabilities$548,755
    2024right-of-use asset - operating leases$1,574,210
    2024income before income taxes$2,083,258
    2024notes receivable, current portion, net$1,287,469
    2024accounts payableMore than one value recorded for this year — open the FDD source before comparing$134,366
    2024u.s. royalties$11,249,980
    2024net income$1,503,348
    2024net cash provided by operating activities$1,742,067
    2024operating lease liabilities, less current portion$1,323,046
    2024sales$1,266,160
    2024cost of sales-$967,115
    2024advertising trust fund remittances$450,364

    These figures describe the franchisor company, not individual franchise locations.

    SBA-backed loans to franchisees

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    Source: U.S. Small Business Administration 7(a) & 504 FOIA data. Loan volume is not a measure of franchisee success.

    Related research

    Brands in the same subcategory first, then the wider industry, ordered by shared business format, overlapping investment range, Item 20 outlet count and search interest. This is not a ranking or recommendation.

    Little CaesarsWingstopSubwaySonic Drive-InFive GuysTaco Bell Corp.

    Head-to-head comparisons

    A&W Restaurants, Inc. vs Little CaesarsA&W Restaurants, Inc. vs WingstopA&W Restaurants, Inc. vs SubwayA&W Restaurants, Inc. vs Sonic Drive-InA&W Restaurants, Inc. vs Five GuysA&W Restaurants, Inc. vs Taco Bell Corp.
    Compare reviewed facts

    At a glance

    Business history

    Not reviewed

    Owner participation

    Not reviewed

    Territory language

    Litigation disclosure

    Not reviewed

    Bankruptcy disclosure

    Not reviewed

    Agreement term

    Not reviewed

    Independent analysis of franchisor-provided data. Not investment advice. Franopolis does not distribute FDDs.

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