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Entrepreneur: Start & Grow Your Business

A & W Restaurants Inc.

Burgers, hot dogs, root beer

Background

Founded: 1919 Franchising since: 1925
Roy W. Allen opened his first beverage stand in Lodi, California, in 1919. Three years later, he joined forces with Frank Wright to form the A&W Root Beer Co. In addition to selling root beer, A&W established a chain of drive-up restaurants that served the company's root beer as well as favorites like hot dogs, hamburgers and french fries. Today there are A&W Restaurant locations around the world.

A&W's parent company, Yum! Brands Inc., also owns Long John Silver's, Taco Bell, KFC, and Pizza Hut.

1900 Colonel Sanders Ln.
Louisville, Kentucky 40213
Phone:
(866)298-6986

Franchisee Association
National A&W Franchise Association

Franchise Growth
Year U.S. Franchises Canadian Franchises Foreign Franchises Company Owned
2009 363 0 264 0
2008 367 0 254 4
2007 397 0 238 9
2006 -- -- -- --
2005 446 0 208 15

Where Seeking Franchisees
In the U.S. Alaska, Alabama, Arkansas, Arizona, California, Colorado, Connecticut, Delaware, Florida, Georgia, Hawaii, Iowa, Idaho, Illinois, Indiana, Kansas, Kentucky, Louisiana, Massachusetts, Maryland, Maine, Michigan, Minnesota, Missouri, Mississippi, Montana, Nebraska, North carolina, North dakota, New hampshire, New jersey, New mexico, Nevada, New york, Ohio, Oklahoma, Oregon, Pennsylvania, Rhode island, South carolina, South dakota, Tennessee, Texas, Utah, Virginia, Vermont, Washington, Wisconsin, West virginia, Wyoming
Outside the U.S.: Asia

Costs and Fees

Total investment: $1M-1.6M
Franchise fee: $20K
Ongoing royalty fee: 5%
Term of agreement: 20 years, renewable
Express/kiosk option available

Type of Financing Available
In-House Third Party
Franchise Fee No Yes
Startup Costs No Yes
Equipment No Yes
Inventory No Yes
Accounts Receivable No Yes
Payroll No Yes

Qualifications
Net worth requirement: $1M
Cash liquidity requirement: $360K
Business Experience:
  • Industry experience
  • General business experience
  • Marketing skills


Training and Support

Training
  • Available at headquarters: 2 weeks

Ongoing Support
  • Newsletter
  • Meetings
  • Toll-free phone line
  • Grand opening
  • Field operations/evaluations
  • Purchasing cooperatives

Marketing Support
  • Co-op advertising
  • Ad slicks
  • Regional advertising

Rankings

Franchise 500® rank:
#199 (2009); #311 (2008); #245 (2006); #252 (2005);

America's Top Global Franchises:
#142 (2005);