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
?
213
+
1%
1%
Franchise fee
?
$30,000
Investment
?
$299,000 - $1,640,000
Revenue (AUV)
?
Undisclosed
$1,037,000
+
11.9%
11.9%
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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.
Initial investment
The initial investment required for a A&W Restaurants franchise is
$299,000 - $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.
A&W Restaurants offers 3 types of franchises:
Type of Expenditure
Amount
Freestanding Restaurant
$894,434 to $1,639,906
In-line Restaurant
$424,434 to $1,129,183
Captive Restaurant
$298,899 to $724,971
We are summarizing below the main costs associated with opening a A&W Restaurants Freestanding franchise.
For more information on the various types of franchises and its costs, refer to the Franchise Disclosure Document (Item 7).
Type of Expenditure
Amount
Professional Fees, Licenses & Permits
$30,000 - $84,000
Building Costs Including Site Work
$500,000 - $869,484
Signs
$70,000 - $87,658
Technology System
$33,534 - $69,723
Furnishings, Fixtures & Equipment
$184,900 - $275,639
Initial Franchise Fee
$15,000 - $30,000
Grand Opening Promotion Deposit
$5,000
Management Training Course Expenses
$3,000 - $10,000
On-Site Team Member Training Expenses
$8,000 - $30,000
Miscellaneous Opening Costs
$6,000 - $12,402
Opening Inventory
$9,000 - $16,000
Additional Funds – 3 Months
$30,000 - $150,000
Total (Excludes Real Estate)
$894,434 - $1,639,906
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A&W Restaurants offers 3 types of franchises:
Type of Expenditure
Amount
Freestanding Restaurant
$894,434 to $1,639,906
In-line Restaurant
$424,434 to $1,129,183
Captive Restaurant
$298,899 to $724,971
We are summarizing below the main costs associated with opening a A&W Restaurants Freestanding franchise.
For more information on the various types of franchises and its costs, refer to the Franchise Disclosure Document (Item 7).
Type of Expenditure
Amount
Professional Fees, Licenses & Permits
$30,000 - $84,000
Building Costs Including Site Work
$500,000 - $869,484
Signs
$70,000 - $87,658
Technology System
$33,534 - $69,723
Furnishings, Fixtures & Equipment
$184,900 - $275,639
Initial Franchise Fee
$15,000 - $30,000
Grand Opening Promotion Deposit
$5,000
Management Training Course Expenses
$3,000 - $10,000
On-Site Team Member Training Expenses
$8,000 - $30,000
Miscellaneous Opening Costs
$6,000 - $12,402
Opening Inventory
$9,000 - $16,000
Additional Funds – 3 Months
$30,000 - $150,000
Total (Excludes Real Estate)
$894,434 - $1,639,906
Franchise Disclosure Document
Below is A&W Restaurants's 2025 Franchise Disclosure Document. Upgrade to Pro or purchase the FDD to view and download the document.
Number of units
A&W Restaurants had 215 total units in 2025, of which 213 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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