- 2024 Franchise 500 Rank
-
#170 Ranked #210 last year
- Initial investment
-
$278K - $1.6M
- Units as of 2023
-
884 5% over 3 years
Bring home the taste of root beer to your favorite neighborhood and keep those good times rolling.
Few things can send you flying back down memory lane faster than the taste of an A&W root beer. It might bring back thoughts of family reunions or picnics in the park with friends, but whatever it is, root beer and good times tend to go hand in hand for many people. Now you can franchise a piece of classic Americana by running an A&W Restaurants franchise.
In addition to its root beer, A&W Restaurants also offers yummy burgers, hot dogs, chicken, sides, and ice cream. It was founded in 1919 and has been franchising since 1925, making it a franchise with an impressive amount of experience.
Why You May Want to Start an A&W Restaurants Franchise
The key difference between opening an A&W Restaurants franchise versus other fast-food brands may be that it strives to bring the community together using good root beer, good food, good people, and good times.
The A&W Restaurants franchise association board usually makes all the decisions, and everyone in the corporate office still is expected to work in a restaurant once a quarter. This means that they may not lose sight of what is most important for their A&W Restaurants franchise to thrive. If that isn’t enough to help you decide to become an A&W Restaurants franchisee, there's always the namesake beverage.
What Might Make an A&W Restaurants Franchise a Good Choice?
To be part of the A&W Restaurants franchise team, you should make sure you’re financially ready for an initial investment made up of a franchise fee and other startup costs. You should also prepare yourself for ongoing fees that will include advertising, royalty, and renewal fees. Franchisees will also need to meet the company's set net worth and liquid capital requirements.
A&W Restaurants is often awarded for its superior franchise structure and support to veterans. It has appeared in Entrepreneur’s Franchise 500 many times in its lifetime. This ranking is based on an evaluation of more than 150 data points in the areas of costs and fees, size and growth, franchisee support, brand strength, and financial strength and stability.
How to Open an A&W Restaurants Franchise
To get started with an A&W Restaurants franchise, submit an inquiry form. If you are seen as a good fit, an A&W Restaurants franchise representative may reach out to you to begin the franchising process.
Before making any financial commitment or signing an agreement with A&W Restaurants, you must perform your due diligence and establish if this is the right opportunity for you. Speak to existing franchisees and ask questions directed to the A&W Restaurants team. If your net worth and available liquid capital match the brand’s requirements, you may qualify to open an A&W Restaurants franchise, and you can get started with an initial investment and relevant training.
If you decide to take the next step, you'll need to decide what type of store you want your A&W Restaurants franchise to be. There are three different types: a freestanding restaurant, an inline restaurant, or a cobranded (captive) location. Whichever option you choose, it won't be long before you're filling mugs with delicious A&W Restaurants root beer and serving customers tasty food.
Company Overview
About A&W Restaurants
Business Overview
| Franchising Since | 1925 (99 years) |
|---|---|
| # of employees at HQ | 60 |
| Where seeking |
This company is offering new franchises throughout the US. This company is offering new franchises worldwide. |
| # of Units | 884 (as of 2023) |
|
|
|
Information for Franchisees
Here's what you need to know if you're interested in opening a A&W Restaurants franchise.
Financial Requirements & Ongoing Fees
Here's what you can expect to spend to start the business and what ongoing fees the franchisor charges throughout the life of the business.
|
Initial Franchise Fee
|
$15,000 - $30,000 |
|---|---|
|
Initial Investment
|
$278,285 - $1,594,889 |
|
Cash Requirement
|
$150,000 - $275,000 |
|
Veteran Incentives
|
50% off franchise fee |
|
Royalty Fee
|
5% |
|
Ad Royalty Fee
|
2%-5% |
|
Term of Agreement
|
20 years |
| Is franchise term renewable? | Yes |
Financing Options
Some franchisors offer in-house financing, while others have relationships with third-party financing sources to which they refer qualified franchisees.
| Third Party Financing | A&W Restaurants has relationships with third-party sources which offer financing to cover the following: franchise fee, startup costs, equipment, inventory, accounts receivable, payroll |
|---|
Training & Support Offered
Franchisors offer initial training programs and a variety of ongoing support options to help franchisees run their businesses.
| On-The-Job Training | 24-44 hours |
|---|---|
| Classroom Training | 24-40 hours |
| Ongoing Support |
Purchasing Co-ops
Newsletter
Meetings & Conventions
Toll-Free Line
Grand Opening
Online Support
Security & Safety Procedures
Lease Negotiation
Field Operations
Site Selection
Proprietary Software
Franchisee Intranet Platform
|
| Marketing Support |
Co-op Advertising
Ad Templates
National Media
Regional Advertising
Social Media
SEO
Website Development
Email Marketing
Loyalty Program/App
|
Operations
Additional details about running this franchise.
| Is absentee ownership allowed? | No |
|---|---|
|
Can this franchise be run from home/mobile unit?
|
No |
|
Can this franchise be run part time?
|
No |
|
Are exclusive territories available?
|
Yes |
Franchise 500 Ranking History
Compare where A&W Restaurants landed on this year's Franchise 500 Ranking versus previous years.
Additional Rankings
Curious to know where A&W Restaurants ranked on other franchise lists? Find out below.
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