Franchise information for A&W Restaurants – Part 2
January 13th, 2010 | 
Author: Hop up for a piece of the original Canadian carhop restaurant. Founded in 1956 in Winnipeg, Ontario it’s not a big surprise frosted cold mugs of Root Beer were a big hit! For those of you from warmer climates, you don’t know the meaning of cold until you’ve visited Winnipeg in the winter.
A&W started as a drive-in restaurant where friendly wait-staff would take your order side-of-car and bring it out to you. A&W was THE place to go and hang out on a Friday night.
A&W is Canada’s second largest hamburger chain by number of locations. A&W has 670 restaurants in this 100% Canadian-owned company. Franchise hopefuls can pick between opening a freestanding building with parking and drive-thru OR a “convenience location” with parking and drive-thru service located in shared facilities, usually with a gas station and convenience store.
HOW MUCH WILL IT COST?
The start-up price will vary depending on location, local market and governmental requirements. Obviously the cheaper way to go would be to operate in an existing building.
Bottom line though, you’ll need at least $250,00 in liquid cash to get the ball rolling. The approximate investment will total up to around $625,000. Ironically, about the same as it would cost you to buy a four bedroom house in Toronto, Ontario, so not an unreachable amount. A&W has lenders ready to help you with the investment. Costs will be lower if you operate in an existing building or in a shared location.
You will need to pay for:
*A&W restaurant including any construction or modifications
*an equipment package
*start-up costs – food, supplies, etc.
*Franchise Fee – $50,000 for a 20 year term
*Service Fee – 2.5% of net sales
*Advertising Fee – 2.5% of net sales
*Local advertising – 1% of net sales
As franchises go, it’s a pretty inexpensive one. Way more expensive than Subway, but about 1/3 of the price to open a Tim Horton’s or McDonalds.
WHERE WILL I BE LOCATED?
If you’re able to get your head around financing, it’s time to decide where you want to open. A&W’s website has a map you can click on to see what franchises are available across the country. Clicking on Ontario I saw opportunities in 41 different towns and cities.
SWEET! HOW DO I GET IN ON THIS?
1. You will need to go online and fill out an application to get the ball rolling. The Link: http://www.aw.ca/awfranchise.n sf/eng/GetStarted
2. If they like your application A&W will invite you in for an interview.
3. A&W expects you to perform a financial rewiew of the restaurant you are planning to open. I’m assuming they’ll tell you how to do this.
4. While waiting for results from A&Ws financial background check on you and approval you’ll be asked to help out at an A&W restaurant to see how it all works.
5. If your financial records are approved, you’ll be offered a franchise and be asked to sign a Franchise Agreement.
6. Put up a $25,000 deposit. You can do it! Frosty Rootbeer awaits!
I’M EXCITED AND KINDA SCARED!
Don’t worry! A&W wants you to succeed, after all you carry their brand name and pay them service fees! To accomplish your goals A&W will supply you with:
*Initial development and design help
*Six-months extensive hands-on training for you and key managers
*Training for your crew
*Advice about staffing, local advertising and cost management
*Marketing and promotional support.
This sounds like a great opportunity I entirely recommend!
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