--- title: "Franchise Deep Dive: A&W Restaurants' Franchise Costs, Fees, Profit and Data" url: https://burnaze.com/article/a6338a0c-cb0b-487b-bba1-2441400fd188 source: "1851 Franchise" original_url: https://1851franchise.com/franchise-deep-dive-aw-restaurants-franchise-costs-fees-profit-and-data-2722738 category: "Burger" industry: "Restaurants" segment: "Burger" topics: ["Finance & M&A"] published: 2023-06-27T14:09:01.000Z modified: 2026-11-01T02:07:44.173Z image: https://newimage.1851franchise.com/cdn-cgi/image/quality=85,format=webp,width=1280,height=720/story/featureImage/e128aa7d444a71115d55772d6d97c6325081.jpg --- # Franchise Deep Dive: A&W Restaurants' Franchise Costs, Fees, Profit and Data **TL;DR:** A&W Restaurants, a classic American casual fast-food chain, has been franchising for over 40 years and has approximately 550 restaurants in the U.S. and over 300 standalone units internationally. The brand offers a proven franchise model with an emphasis on burgers and root beer. *originally published in 1851 Franchise on 2023-06-27. [Read the original](https://1851franchise.com/franchise-deep-dive-aw-restaurants-franchise-costs-fees-profit-and-data-2722738).* ## Key facts - A&W has 550 US restaurants and 300 international units - Average annual sales are higher than industry average - Initial franchise fee ranges from $15,000 to $30,000 ## Story ## Company history A&W Restaurants is a classic American casual fast-food chain known for its iconic root beer and burgers. The A&W brand was first established in 1919 in Lodi, California as a roadside stand when founder Roy Allen handed out his first homemade soda. In 1922, Roy Allen partnered with Frank Wright. The duo then leased their first two root beer stands to other operators. That same year, the partners coined the name A&W, the first letter of their last names. By 1925, the partners began selling franchise opportunities, making A&W the first and the oldest franchise restaurant chain in America. In 2011, A&W was purchased by a group of domestic and international A&W franchise partners. To this day, A&W continues to sell its iconic root beer, burgers, shakes, hot dogs, sides and chicken. ## Restaurant locations **How Many A&W Restaurants Are There?** As of June 2023, A&W has approximately 550 restaurants in the U.S. and over 300 standalone units internationally. The brand is actively offering new franchise opportunities across the globe. ## Business model **What Is the A&W Restaurant Business Model?** The A&W Restaurant business model is focused on offering franchise opportunities and serving classic American cuisine, with an emphasis on burgers and the brand’s signature root beer. Since being purchased by a group of franchise partners in 2011, the brand says no decisions are made without input from the National A&W Franchise Association, its franchisee association board. A&W provides all new franchise owners with ample support regarding site selection, training, marketing and supply chain management. The brand also leverages its brand heritage and emphasizes quality, taste and service to attract new guests. Unlike other franchise brands, A&W prides itself on being able to work in small towns. According to its franchise website, A&W has a “long history of success in small towns that other restaurant franchises overlook.” The brand is able to operate in smaller areas that pick up guest traffic from tourism. In order to keep operating costs low for its franchise owners, A&W utilizes its partnership with Restaurant Supply Chain Solutions, which is a distributor for franchises such as Pizza Hut, KFC and Taco Bell. Through this partnership, A&W seeks to provide the lowest food, paper and equipment costs possible. ## Franchise finances **How Much Can A&W Restaurant Franchise Owners Make?** According to A&W Restaurants’ franchise site, the brand has average annual sales that are higher than the industry average. Since 2011, A&W owners saw same-store sales grow on average by upwards of 67%. **How Much Does It Cost to Open an A&W Restaurant?** The total investment necessary to begin operation, not including rent or land costs, is $871,000 to $1,469,554 for a freestanding restaurant; $401,000 to $1,051,088 for an inline restaurant; and $276,000 to $704,000 for a captive restaurant. A&W also requires franchise candidates to have a minimum liquidity of $150,000 and a net worth of at least $350,000. **What Is the Franchise Fee for A&W Restaurants?** The initial franchise fee ranges between $15,000 to $30,000. **Who’s on the A&W Restaurants Leadership Team?** - Dale Mulder, Chairman of A&W Restaurants - Kevin Bazner, CEO - Paul Martino, President and COO - Bill Fry, Vice President of Restaurant Support Services - John Palumbo, Sr., Director of Franchise Development - Ron Lewis, Director of Design & Construction - Liz Bazner, Senior Director of Marketing - Jodi Shepherd, Vice President of Finance & Human Resources *Disclaimer: This content is for informational purposes only. You should not construe any such information or other material as legal, tax, investment, financial or other advice. Nothing contained on this site constitutes a solicitation, recommendation, endorsement, or offer to buy or sell any franchises, securities, or other financial instruments in this or in any other jurisdiction in which such solicitation or offer would be unlawful under the franchise and/or securities laws of such jurisdiction. All content in this article is information of a general nature and does not address the detailed circumstances of any particular individual or entity. Nothing in the article constitutes professional and/or financial advice, nor does any information in the email constitute a comprehensive or complete statement of the matters discussed or the law relating thereto. You alone assume the sole responsibility of evaluating the merits and risks associated with the use of any information or other content in this article before making any decisions based on such information or other content. ## Entities - 1851 Franchise (publication) - Restaurants (sector) - Taco Bell (company) - franchise model (topic) - KFC (company) - Pizza Hut (company) - franchise costs (topic) - franchise fees (topic) - restaurant chain (topic) - A&W Restaurants (company) - fast food (topic) - John Palumbo (person) --- Originally reported by 1851 Franchise (https://1851franchise.com/franchise-deep-dive-aw-restaurants-franchise-costs-fees-profit-and-data-2722738). Summarized by Burnaze (https://burnaze.com/article/a6338a0c-cb0b-487b-bba1-2441400fd188).