A&W Restaurants is a beloved fast-food chain known for its classic burgers, handcrafted root beer, and all-American dining experience.
KEY FRANCHISE STATS
Franchisees
?
208
+
-2%
-2%
Franchise fee
?
$30,000
Investment
?
$301,000 - $1,640,000
Revenue (AUV)
?
Undisclosed
$1,001,000
+
0.2%
0.2%
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Established in 1919 in Lodi, California, A&W Restaurants has become a cornerstone of American fast food, renowned for its draft root beer and classic fare. The brand's inception dates back to when Roy W. Allen opened a roadside root beer stand during a homecoming celebration for World War I veterans.
In 1922, Allen partnered with Frank Wright, leading to the creation of the A&W name, derived from the initials of their last names. A&W began franchising in 1925, pioneering the concept of restaurant franchising in the United States.
The menu features a variety of American classics, including burgers, hot dogs, and their signature root beer floats. The brand distinguishes itself by serving its famous root beer in frosty mugs, offering a nostalgic experience that harkens back to its origins.
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The initial investment required for a A&W Restaurants franchise is
$301,000 - $1,640,000.
That is the total cost you would need to finance if you were to start this franchise.
These costs are provided by the franchisor in the Franchise Disclosure Document.
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
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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
Franchise Disclosure Document
Below is A&W Restaurants's 2026 Franchise Disclosure Document. Sign up for free to view the document.
Number of units
A&W Restaurants had 210 total units in 2026, of which 208 were franchised-owned and 2 company-owned.
The franchisor provides comprehensive training programs designed to ensure that franchisees and their staff operate the restaurant in alignment with the company’s standards and methods. Here are the key elements of the training:
Management Training Course: This initial course is mandatory for the Restaurant General Manager and other key employees. It focuses on restaurant management, standards, methods, and techniques required for successful operations. All associated costs, such as travel, lodging, and tuition, are borne by the franchisee.
On-Site Team Member Training: Before the restaurant opens, all team members must complete digital training modules followed by an on-site training program. This training includes practical sessions and social events to simulate restaurant operations.
Ongoing Training: Refresher courses and additional training, either in-person or online, may be required for restaurant management teams to stay updated with company procedures and standards.
Territory Protection
The franchisor does not guarantee absolute territory protection for its franchisees. While a franchisee may be assigned a specific trade area, the franchise agreement generally allows the franchisor to establish other locations or sell franchises within or near the assigned area.
This means that the franchisee may face competition from other franchised or company-owned outlets, even within their immediate geographical vicinity.
Furthermore, the franchise agreement typically includes clauses that permit the franchisor to reserve rights to market or distribute products or services through alternative channels, such as online platforms, within the franchisee’s trade area.
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