A&W Restaurants FDD Summary
Type of Business
The franchisee will operate a quick-service restaurant featuring A&W Root Beer® and other approved items in a freestanding restaurant (“Freestanding”), a restaurant connected to or in line with another retail space (“lnline”), a restaurant in an express or “captive audience” location (“Express”) or a restaurant in a co-brand format (“Co-Brand”).
A&W Restaurants, Inc., a Michigan corporation (“A&W”), is the franchisor. A&W was incorporated· in California as A&W Restaurants, Inc. on April 28, 1950. and (by way of subsequent merger and name change) in Michigan on February 18, 1982. A&W’s principal office address is 1648 McGrathiana Parkway, Suite 380, Lexington, KY 40511. A&W does business only under its corporate name, although A&W also operates, and licenses others to operate, restaurants under the names “A&W” and “A&W All American Food.”
A&W is a wholly owned subsidiary of A Great American Brand, LLC (“AGAB’), a Delaware limited liability company which, on December 19, 2011, purchased A&W’s stock from Yum! Brands, Inc. (“Yum”) and Yorkshire Global Restaurants, Inc. (“YGR”). AGAB’s principal office address is 1648 McGrathiana Parkway, Lexington, KY 40511.
The total investment necessary to begin operation of an A&W franchise restaurant, not including rent or land costs, is $832,000 to $1,197.00 for a Freestanding building; $292,000 to $682,000 for an lnline location; $122,500 to $518,000 for an Express location; $132,500 to $528,000 for the A&W portion of an existing restaurant that will be converted to a Co-Brand restaurant; and $1,118,000 to $1,822,000 for the A&W and co-brand portions of a new, ground-up Co-Brand restaurant. This includes $20,250 to $35,000 that must be paid to the franchisor or its affiliates.