A&W Food Services of Canada Inc.

Thank you for your interest in A&W. The following frequently asked questions have been created to help you. Please contact us if you still have questions.

Q. Why would I choose A&W over another franchise?

Since 1956, A&W has been serving up Canada's best-tasting, best-loved burgers, onion rings and root beer to an intensely loyal and growing group of customers. Today, A&W is Canada's second largest hamburger chain, by number of restaurants, with over 630 restaurants operated by entrepreneurs like you. We're continuing to grow -- not just with new restaurants, but with some of the best same store sales growth in the industry. At A&W, it's all about our mutual growth and success, and through almost 50 years of business, we've learned what it takes to achieve it.

Q. How much does it cost to acquire a franchise?

The start-up investment in an A&W restaurant varies depending on factors like restaurant size and format. Other factors such as geographic location, local market conditions and municipal requirements, as well as existing site or building conditions, will also have an impact on start-up costs.

To invest in an A&W franchise, you’ll need a minimum of $250,000 in unencumbered* cash. This cash requirement represents approximately 40% of the total investment, though this too will vary according to the specifics of the location and the financial structure of the opportunity. Financing can be secured with lending institutions offering preferred programs to A&W franchisees. (Note: the cash requirement for a convenience location is slightly lower. Please contact us for further details).

*unencumbered in this context means money that is not borrowed and is not securing any other loan.

Investment costs include:

A&W equipment package
construction activities required to build and/or modify space to create an A&W restaurant
start-up costs
initial investment and ongoing fees

Initial Franchise Fee	$50,000 - 20 year term
Service Fee	2.5% of net sales
National Advertising Fee	2.5% of net sales

Q. Where are A&W franchises available in Canada?

Please refer to our opportunities page and select the province that is of interest to you.

Do I need any previous restaurant experience?

No previous restaurant experience is required. A&W looks for individuals with an understanding of general business principles, along with a strong financial rating and the ability to invest in and support a restaurant. Our training program is designed to provide you with the knowledge and skills required to become a successful A&W restaurant owner/operator.

What qualities does A&W usually require of its franchisees?

To qualify for an A&W franchise, an individual must have a strong desire to own and operate their own successful business, specifically a franchised quick service restaurant. A&W looks for high potential owner/operators who are fully committed to the business and to making it a success, as well as an ability to relate well to employees, customers and the community. The need for hard work in the operation of a profitable A&W restaurant cannot be overemphasized.

What does A&W “Climate” mean to me as a Franchisee?

Climate at A&W is "the way we work together". Over the years, Climate has become a key competitive advantage for our operators. The Climate Goals and processes have enabled operators to develop a truly effective working relationship with their employees, suppliers and associates that have resulted in A&W enjoying an outstanding environment of caring, openness and honesty. As a franchisee within the A&W system, you will be expected to learn about and fully support the Climate Goals established for our business and to practice the principles of Climate in your every day work.

Is financing available from A&W?

A&W does not provide any form of financing for our franchised restaurants. However, we will provide the necessary information and advice to assist applicants in making appropriate representations to financial institutions.

How long does the Franchise Agreement last?

A&W's standard Franchise term is twenty (20) years.

Who sets the operational procedures and policies?

Operational procedures and policies are established and mandated by the A&W Standards Board. As mentioned earlier, the A&W Operations Manual, supplied to every franchisee, clearly defines the standard policies and procedures to be followed in operating an A&W restaurant. A Regional Manager visits each A&W, in his/her respective territory several times a year to provide any assistance the operator may require while ensuring that the A&W standards are being maintained.

What ongoing fees are required?

After the Initial Franchise Fee of $50,000, there are on-going fees to be paid to A&W which correspond to the restaurant's net sales. These fees include a Service Fee of 2.5% and a National Advertising Fee of 2.5%. A&W also asks that you spend at least 1% of net sales on local advertising and promotion. A&W also receives revenue for its purchasing and distribution services through a margin built into the cost of items such as equipment and packaging.

Where would my A&W be located?

At any given time, there are usually a number of new A&W opportunities available to match with high potential franchisees in urban centres as well as in smaller markets. Please indicate which locations you would prefer on your application. Where possible, we will make every effort to accommodate your preference. There is a good chance, however, that a quality opportunity will exist elsewhere and you would be given a choice. Your willingness to relocate will influence how quickly you can expect to establish a successful A&W franchise.

What form of training and guidance is provided by A&W?

Before a restaurant opens, we provide six weeks of intensive in-store training for the franchisee and, in some instances, key management people. The training takes place at an established A&W restaurant, usually in the same province where the new restaurant will be located. As opening day draws closer, we bring additional support right to your doorstep -- assisting you with staff training, and making sure every aspect of your restaurant opening goes smoothly.

Where do I buy supplies?

Because A&W is a system-wide chain, specific ingredients, products and equipment are required. Therefore, to maintain consistency, franchisees are required to purchase many of these items from authorized suppliers engaged by A&W to supply the entire system. Several other items required for the day to day operation of the restaurant can be sourced locally by the operator, such as produce and dairy supplies.

What about advertising?

A coordinated advertising effort is an essential part of the success that A&W has enjoyed over the years. The national advertising program includes advertisements in a variety of mediums including: television, radio, billboards, coupons, in store promotional materials, etc. Each franchisee is required to contribute 2.5% of net sales to a National Advertising Fund and also to spend at least 1% of net sales on local advertising and promotion. A&W marketing personnel are available to make recommendations and assist in getting the most for your advertising dollar. Personal appearances of The Great A&W Root Bear are also a powerful promotional aid and are available for use by all A&W operators.

Is there a risk?

Yes, there is risk involved on any business venture. However, the combination of a strategically driven, well managed franchise system, appropriate location, quality products, a well organized operation and good management act to greatly minimize this risk. You are encouraged to enlist the services of a professional accountant and lawyer to aid in assessing any specific franchise opportunity. Once again, the importance of a committed, involved, hands-on operator cannot be overemphasized to the success of the restaurant.