A&W Restaurants

Item 7 details the initial investment from $894,434 to $1,639,906 for freestanding or in-line units, covering build-out, equipment, and inventory, with a $30,000 franchise fee upfront. Ongoing fees eat 5% royalties plus 5% ad fund (2% for captive venues), plus $333-$833 monthly insurance reimbursements. Item 19 shines with average gross revenues of $1,084,849, but the 0% EBITDA margin flags razor-thin profits after expenses—likely from high food costs and labor in drive-thru operations. Just 2 SBA loans averaging $222,500 suggest financing hurdles or low appeal for lenders.

The system's 427 franchise locations plus 2 corporate show resilience since 1950, yet growth stalled at +0% (212 units in 2023 to 213 in 2024), with 9 projected new units offering slim expansion hope. Five terminations, three non-renewals, and six transfers indicate some owner churn, not catastrophic but signaling satisfaction issues amid flat momentum. For buyers eyeing $1M+ sales potential, A&W suits patient operators in high-traffic spots who can squeeze margins, but the data screams caution on scalability versus flashier fast-food peers.