Royalty Reduction Helps Propel A&W Forward

Through the end of 2019, A&W is offering significant savings on royalties for new franchisees. Here’s why.

A man in an A&W branded orange-checked shirt smiles at the camera as he holds a burger in both hands. A Root Beer float is visible to his left.

CEO Kevin Bazner and his team are focused on generating bottom line results for franchisees. To help new franchisees get off to a great start, that includes reduced royalties for the first years in operation.

A&W celebrated 100 years in business this year, and we’re already looking toward our next century in business. As we execute our aggressive growth plans, we want to sweeten the pot for savvy investors to help us build the brand.

Our Second Century Growth Initiative reduces royalties for all new franchise partners in the U.S. through the end of 2019. Our leadership team is anticipating a lot of growth in areas where our brand is already known and beloved, as well as in less developed territories. The reduced royalty program, combined with our new store redesign, will help propel that growth.

Three years of reduced royalties

Since being acquired from YUM! Brands in 2011, A&W has opened more than 60 new U.S restaurants; 15 are planned for 2019. Same-store sales on average have grown more than 32%.

The brand was bought by a core group of franchisees, and that puts us in a unique position to make the decisions that are best for our franchisees — and our brand overall — in the long-term. We wanted to entice experienced entrepreneurs to our franchise, and lower royalties will allow them more flexibility in their first few operating years, which is crucial to success.

A&W franchise costs are accessible, with an average startup investment ranging from $269,000 to $1.2 million. With a reduction in first-year royalties for new operators from 5% to 2%, that means having more money to re-invest in your business wherever it may be needed in that important first year. The royalties are adjusted to 3% in the second year and to 4% in the third, before returning to 5% in the fourth year.

Why A&W is a worthwhile investment

You know we’ve been in business for 100 years, but do you know why?

Operational excellence.

“The one thing that’s been consistently there throughout all our years in business is our operators,” says CEO Kevin Bazner. “Through all our ups and downs, it always comes back to our operators. Their tenacity, their sheer willpower, have really made A&W what it is today.”

A&W is a brand that’s known and loved nationwide. We’re a large chain with nearly 600 locations, but we still have a lot of territory availability. We also have a strong balance sheet and a stable leadership team to ensure brand consistency.

We keep our standards high and we keep looking at how we can grow stronger and better. A&W has no exit strategy because we’re owned by franchisees — our people are the brand. Everything we do, we do with franchisees and bottom-line profitability in mind.

Learn more

You can discover more about our franchise offering by filling out the form on this page. You can also continue to explore our website to learn more about A&W franchise costs and the benefits of investing in our restaurant franchise opportunity. We look forward to hearing from you!