Franchise Summary
Description
Schlotzsky’s® restaurants are bakery-cafe, quick casual restaurants featuring premium sandwiches, pizzas, soups and salads and complementary food and beverages. As a condition of granting you a Schlotzsky’s® franchise, the franchisor also typically requires you to purchase a Cinnabon® Express franchise to operate inside the Restaurant, except in rare instances involving non-traditional locations.
Company Background
Schlotzsky's is a quick casual restaurant that offers premium sandwiches, pizzas, soups and salads. The company was founded in Austin, Texas by John Schlotzsky as the first ever franchised sandwich shop. In 1971 he opened up his first location on Guadalupe Street in Hyde Park Village and for years to come would open other locations across the country. In 1977 Schlotzsky's partnered with Cinnabon(R) Corporation to offer an additional menu item: cinnamon rolls baked fresh inside of their restaurants for customers to enjoy while they dine.
Franchise Opportunity
Owning and operating a restaurant can be a challenging endeavor. There are so many moving parts, from the food to the customer service to the marketing. Opening a restaurant can be an incredibly risky proposition. The failure rate is high, and it's hard to know what you're getting into until it's too late. Schlotzsky's is here to help take some of the risk out of owning and operating your own restaurant. With our extensive training and support system, we will help you every step of the way so that you can focus on what you do best - serving delicious food to your customers.
Corporate Structure
Schlotzsky’s Franchise LLC is a Georgia limited liability company formed on September 26, 2006. Their principal business address is 5620 Glenridge Drive NE, Atlanta, Georgia 30342. They have been offering franchised Restaurants since November 2006.
Investment and Franchisee Fees
The total investment necessary to begin operation of a Schlotzsky’s® franchise with a Cinnabon® Express franchise inside it ranges from $503,814 to $786,984 ($358,449 to $979,984 for a converted location). This total investment estimate includes $37,500 that must be paid to the franchisor or affiliates. The total investment necessary to begin operation of a Schlotzsky’s® Cafe Xpress restaurant with a Cinnabon® Express franchise inside ranges from $42,064 to $701,984 ($272,564 to $661,984 for a converted location). This includes $37,500 which must be paid to the franchisor or affiliates.
Earnings Transparency
This Franchise discloses slightly more information about the financial performance of their franchisees compared to other franchises in the same industry
Why do some franchises disclose more than others?
There are many reasons why a brand may choose to not include item 19 on their FDD: they could be a newer franchise, they may be in a unique industry that is not super profitable or well-known yet
Financial Performance of "Standard" Units
Average Revenue Per Unit
Compared vs. Quick Service Restaurants (QSR) Industry$934,698 / unit
Franchise Type: Standard
Average Revenue During 2020
Employee Contact Database
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Distribution of Schlotzsky's Franchisees
Schlotzsky's Franchise System Development in 2022
FAQ
How much investment do I need to start my own Schlotzsky's business?
Franchisees typically require at least $647,875 to $1,951,300 investment to get their Schlotzsky's business started
What are the initial franchise fees for Schlotzsky's?
Franchisees typically need to pay at least $36,030 in fees directly to Schlotzsky's in order to earn the right to launch their business
How much money can I make with a Schlotzsky's franchise? What are
the average revenues for a typical Schlotzsky's business?
We estimate that the average revenue of an individual
Schlotzsky's unit is approximately
$934,698. We based this on Item 19 in franchise disclosure
document
How long do I need to commit to running a Schlotzsky's unit? What
is my contractual commitment?
Schlotzsky's franchisees are typically required to sign up to a
20 year contract initially. The renewal length
is 20 years. You can of course exit early but
don’t expect to get any refund!
Accessibility
The Franchisor's investment costs ranges from
$238,200 to $1,927,500
which is
Much Higher
than the $0 to $0 average in the Quick Service Restaurants (QSR) industry
What determines the investment cost?
Item 7 of the Franchise Disclosure Document lays out the full list of initial investment costs, including the fee payable to the franchisor, security deposits, equipment, professional fees etc
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