--- title: "How Much Does It Cost To Open an A&W Freestanding Restaurant?" url: https://burnaze.com/article/95286d44-8fe4-4c34-a2fc-9ea2e5149ff5 source: "1851 Franchise" original_url: https://1851franchise.com/how-much-does-it-cost-to-open-an-aw-freestanding-restaurant-2716564 category: "Burger" industry: "Restaurants" segment: "Burger" topics: ["Development & multi-unit"] published: 2021-09-02T14:09:00.000Z modified: 2026-11-01T02:13:42.224Z image: https://newimage.1851franchise.com/cdn-cgi/image/quality=85,format=webp,width=1280,height=720/story/featureImage/768b61c8e1977aaa61343bd997e000d28586.jpg --- # How Much Does It Cost To Open an A&W Freestanding Restaurant? **TL;DR:** The total investment in a freestanding A&W restaurant is between $871,000 and $1,454,750, including a $30,000 franchise fee. A&W has seen 33% growth compared to 2011 and is preparing to welcome new franchisees into its family. *originally published in 1851 Franchise on 2021-09-02. [Read the original](https://1851franchise.com/how-much-does-it-cost-to-open-an-aw-freestanding-restaurant-2716564).* ## Key facts - A&W freestanding restaurant costs $871,000-$1,454,750 - 33% growth compared to 2011 - 14% increase in average unit volume last year ## Story A&W, the century-old restaurant franchise with more than 500 units in the U.S., offers entrepreneurs a once-in-a-lifetime opportunity to join a beloved brand with a timeless menu, franchisee-owned model and strong support system among a host of other benefits. But now for the question every potential franchise owner asks first: “How much does it cost to open a location with the brand?” ## Investment costs The total investment in a freestanding A&W restaurant is between $871,000–$1,454,750, including a $30,000 franchise fee (which does not include real estate). This investment figure also includes $200,000–$325,000 for furnishings, fixtures and equipment, manager and employee training and more. There are three different types of A&W restaurants that franchise owners can invest in: a freestanding restaurant, an inline restaurant and a non-traditional restaurant. Startup costs and fees vary depending on the model, but real estate costs are not included in the startup costs for any model. - **Freestanding Restaurant (****$871,000–$1,454,750):** Has indoor/outdoor dining areas, as well as a drive-thru. - **Inline Restauran****t ($401,000–$1,013,750):** Has retail space or a gas station/convenience location. - **Non-Traditional Restaurant ($276,000–$704,000):** malls, airports, college campuses or other captive locations. ## Location types A&W freestanding restaurants are generally located in urban, rural and residential areas, whereas inline restaurants are commonly located in gas/convenience stores and shopping centers. According to A&W’s Franchise Disclosure Document (FDD), real estate costs can vary significantly depending on numerous factors, including whether the franchise owner purchases with cash or chooses to finance or lease. The real estate costs also vary considerably according to site size, prevailing regional land and rental costs, street access and other factors. Financing costs vary with the amount financed, prevailing interest rates and other terms. ## Brand growth This year, A&W’s history, nostalgic aesthetic and forward-thinking mindset has led the brand to 33% growth compared to 2011, and it is one of the few restaurant franchises that is coming out of the pandemic even stronger than it went in. The brand’s standalone model proved to be particularly resilient against the challenges of COVID-19. The model saw a 14% increase in average unit volume last year, and A&W saw a 9% increase in year-over-year sales across its entire system, separating it from the crowd during a year when most foodservice brands were suffering from dramatic sales dips. “Our standalone model allowed us to not only survive but thrive in 2020, when dining rooms were closed in cities across the country,” said John Palumbo, senior director of franchise development for A&W. “That’s why we are prioritizing the growth of our standalone drive-thru model in the coming years.” Now, after nearly a decade of year-over-year sales growth and a successful 2020, A&W is preparing to welcome new franchisees into its family, starting with new locations in Ohio, Michigan, Iowa, Minnesota, the Pacific Northwest and the Rocky Mountain region. With a franchisee-owned business model, new A&W franchise owners never feel alone. They are backed by the National A&W Franchisee Association (NAWFA) Board, whose membership represents a variety of franchise A&W owners, because the brand believes franchise owners should be the ones making decisions about the brand. Julie Glenz, an A&W franchisee with locations in Minnesota, says the corporate team made her feel truly supported. “Everything is explained step by step. They make the franchisee feel comfortable, help them understand the value of their investment and encourage them to become very involved with the organization,” Glenz said. “I can't say enough good things about how A&W treats its franchisees and communicates with them at all levels.” ## Entities - 1851 Franchise (publication) - Restaurants (sector) - brand growth (topic) - franchisee support (topic) - franchise costs (topic) - A&W Restaurants (company) - John Palumbo (person) - restaurant investment (topic) --- Originally reported by 1851 Franchise (https://1851franchise.com/how-much-does-it-cost-to-open-an-aw-freestanding-restaurant-2716564). Summarized by Burnaze (https://burnaze.com/article/95286d44-8fe4-4c34-a2fc-9ea2e5149ff5).