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Updated RecentlyA & W Restaurants vs Hot Dog On A Stick Franchise Comparison
Below is an in-depth analysis and side-by-side comparison of A & W Restaurants vs Hot Dog On A Stick including start-up costs and fees, business experience requirements, training & support and financing options.
Start-Up Costs and Fees |
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| Investment | $269,000 - $1,213,000 | $338,200 - $556,000 |
| Franchise Fee | $15,000 - $30,000 | $15,000 - $25,000 |
| Royalty Fee | 5% | 6% |
| Advertising Fee | 5% | 2% |
| Year Founded | 1919 | 1946 |
| Year Franchised | 1925 | 1995 |
| Term Of Agreement | 20 years | - |
| Term Of Agreement | 20 years | - |
| Renewal Fee | - | - |
Business Experience Requirements |
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| Experience | - | |
Financing Options |
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| In-House/3rd Party | In-House/3rd Party | |
| Franchise Fees | No/No | -/- |
| Start-up Costs | No/No | -/- |
| Equipment | No/No | -/- |
| Inventory | No/No | -/- |
| Receivables | No/No | -/- |
| Payroll | No/No | -/- |
Training & Support |
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| Training | Before your restaurant opens, we provide six weeks of intensive in-store training for you and, in some instances, your key management people. The training takes place at an established A&W restaurant, usually in the same province where the restaurant will be located. From being shown the secrets of battering and breading A&W's handmade onion rings, to learning detailed information about how to create an efficient operation and positive work environment, you'll gain the knowledge and the confidence to achieve success in your own restaurant. | On-The-Job Training: 32.5 hours Classroom Training: 35.5 hours Additional Training: At training store |
| Support | The moment you become an A&W franchisee, you can expect complete and unrivaled support for your business and the A&W brand, all with the sole purpose of helping you to succeed. Operational support As your A&W restaurant settles into its regular routine, A&W business managers provide ongoing guidance with operational aspects of your business such as staffing, cost management and local marketing. Our business managers are an extraordinarily experienced team of senior managers whose job is to help you succeed. You'll also be invited to attend regular regional meetings and national conventions, where you'll gain new knowledge and share ideas with senior management and other A&W franchisees. In no time, you'll become a part of our energetic, results-oriented A&W team. Internal communication With over 50 years of experience as a franchise company in Canada, we have learned that communication is a crucial element of any successful franchise organization. The A&W Xchange, a private intranet site developed exclusively for the use of A&W operators and Head Office personnel, provides an outstanding vehicle for daily, real-time communication within the A&W family. You will also have access to a toll-free line for use in contacting Head Office. Internal standards boards and councils Decisions about ongoing operating standards and menu content are conducted through our Standards Board, an executive body comprised of franchisees elected in their region and a number of senior corporate managers. In a similar way, decisions about advertising expenditures and national promotional programs are made by a group of elected franchisees and corporate personnel who serve on our National Advertising Advisory Council. These two bodies give strong evidence of how, by working together, we develop marketing and operational programs that will help grow your business. | Purchasing Co-ops Newsletter Meetings/Conventions Toll-Free Line Grand Opening Online Support Security/Safety Procedures Field Operations Site Selection |
| Marketing | Local store marketing is not just a catchphrase around the A&W family, but a way of life. Each restaurant is unique, and will have a marketing plan tailored to fit it. We understand that there is no one-size-fits-all approach. The A&W Marketing Team and each restaurant's Franchise Growth Leader work one-on-one with Franchise Partners to help develop a marketing strategy, budget, and implementation tactics. | Co-op Advertising Ad Templates National Media Regional Advertising Social media SEO Website development Email marketing Loyalty program/app |
| Operations |
Franchisees required to buy multiple units/master licenses
Absentee ownership of franchise is NOT allowed. | - |
Expansion Plans |
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| US Expansion | - | Yes |
| Canada Expansion | No | - |
| International Expansion | Yes | Yes |
Company Overviews
About A & W Restaurants
In 1919, our founder Roy Allen set up a roadside drink stand in Lodi, California to introduce a new beverage called "root beer" at a parade honoring returning World War I veterans. With his creation an instant success, Allen and partner Frank Wright named the beverage we know today as A&W Root Beer. Allen and Wright started franchising roadside stands, making A&W Restaurants the oldest franchise restaurant chain in the country.
We are proud to stick to our roots and honor the past, while still growing with the changing times. We are committed to making it right, every time. Laughter, simple pleasures, and celebrations are all vital to A&W.
Ask around, everyone has an A&W memory: first dates, baby mugs of Root Beer, high school sweethearts, and that perfect burger.
We're more than just a place for a frosty mug of Root Beer and a great meal.
We're A&W Restaurants, and we're inviting you to be part of something bigger than just owning a business. We're inviting you to be part of the A&W family. Create your very own A&W memories for yourself and your community.
Consider this a unique opportunity to join a 96-year-old iconic American brand being run with the entrepreneurial spirit of a startup company. Since December 2011, when A&W was purchased by a partnership of domestic and international franchisees, A&W set its sight on becoming a world class franchise organization.
Over the last 3 years, we've invested our resources in defining a competitive brand strategy that impacts all consumer touch points and has us well-positioned to capitalize on our heritage while remaining relevant to today's consumer.
From new menu launches like our delicious Hand-Breaded Chicken Tenders and right-sized Mini Polar Swirls to our flexible localized marketing strategies, we are committed to innovation that will bring us another successful 101 years.
The total investment necessary to begin operation, not including rent or
land costs, is $886,000 to $1,397,000 for a Freestanding Restaurant;
416,000 to $977,000 for a Inline Restaurant; and $276,000 to $680,500
for a Captive Restaurant. This includes $15,000 to $30,000 plus an
additional $35,000 if you agree to develop 3 restaurants or $50,000 if
you agree to develop 5 restaurants that must be paid to the franchisor
or its affiliates.
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#7 in Canada's Top franchises.
In Franchise Business Reviews Top 200.
#290 in Franchise 500 for 2020.
About Hot Dog On A Stick
Our first store opened at Muscle Beach, Santa Monica, California in 1946. Our founder, Dave Barham, was a charismatic and enlightened personality who understood the value of treating people to an experience as opposed to a service. In short, he built his business around the concepts of putting people first, and giving them a show.
His approach was extremely successful. By 1990 Hot Dog on a Stick had become an icon in our primary venue, shopping malls, with 60 stores operating in 12 states.
After Dave passed away in 1991, we became an employee owned corporation (ESOP) led by a management team he had mentored over the years. This team has successfully overseen Hot Dog on a Stick's expansion to over 103 stores in 17 states.