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- 2023 Franchise 500 Rank
N/R Not ranked last year
- Initial investment
$200K - $322K
- Units as of 2022
219 14% over 3 years
Here’s what you need to know if you’re interested in opening a Pretzelmaker franchise.
The name says it all: Pretzelmaker makes pretzels. In 1991, the first Pretzelmaker outlet opened under the name "Pretzelvania," but this soon changed to the name we are familiar with when it started franchising in 1992. Now, locations may tempt hungry mall-goers with the promise of soft pretzels and more. A customer may find innovative snacks, a delicious menu, drinks, and dipping sauces in a snack bar setting.
Since beginning to franchise, Pretzelmaker has opened many locations in the United States, Canada, and overseas.
Why You May Want To Start a Pretzelmaker Franchise
Opening a Pretzelmaker franchise may be an opportunity for an ambitious, hard-working franchisee who has plans for the future. Whether you want to be a single or multi-unit franchisee, the ideal Pretzelmaker franchisee is willing to take a leap of faith. A potential franchisee should want to be their own boss and work hard to achieve their goals.
No specific food service qualifications are needed to open a Pretzelmaker franchise, but you may want to have an appetite for pretzels and be able to make them. Though Prezetlmaker isn't the only soft pretzel snack stand in the industry, it may have an advantage of being one of the first companies to offer soft pretzel bites. Pretzelmaker franchises are expected to bake their pretzels daily.
What Might Make a Pretzelmaker Franchise a Good Choice?
On the business end, a Pretzelmaker franchise may offer a flexible business model. This could potentially open up your franchising options. Pretzelmaker offers traditional franchises—a location in a shopping mall, for example—and non-traditional franchises that you can generally adapt to any available space, such as a kiosk-sized booth on a college campus or in an airport.
Pretzelmaker also has a new business model concept called Fresh Twist. Franchisees may find themselves drawn to this option, as it may offer new menu items in addition to the classics.
To be part of the Pretzelmaker team, you should make sure you're financially ready for an initial investment made up of a franchise fee and other startup costs. In addition, you should prepare yourself for ongoing fees that will include advertising, royalty, and potential renewal fees. Franchisees will also need to meet the company's set net worth and liquid capital requirements.
How To Open a Pretzelmaker Franchise
Choosing a good location may be a key to success with a Pretzelmaker franchise. You typically want to find a place with a constant stream of foot traffic. You should choose a spot with constant movement. That said, as you conduct your due diligence, research the brand and your local market.
Consider speaking to existing franchisees and asking the Pretzelmaker franchising team questions. For example, how does the brand hold up against other direct competitors like Wetzel's Pretzels and Auntie Anne's? Are you at liberty to give away samples of products or run your own promotions?
Should Pretzelmaker award you a franchise, you will most likely undergo corporate training. The process should prepare you well for the gift of pretzels you're about to give your community!
- Franchising Since
- 1992 (31 years)
- # of employees at HQ
- Where seeking
This company is offering new franchisees throughout the US.
This company is offering new franchisees worldwide.
- # of Units
- 219 (as of 2022)
Information for Franchisees
Here’s what you need to know if you’re interested in opening a Pretzelmaker franchise.
Financial Requirements & Ongoing Fees
Here’s what you can expect to spend to start the business and what ongoing fees the franchisor charges throughout the life of the business.
- Initial Franchise Fee
- $15,000 - $25,000
Definition: The initial fee paid to a franchisor to join their system
What you need to know: Found in Item 5 of the FDD, this may be a flat fee, or may vary based on territory size, experience, or other factors.The franchise fee is an up-front (one-time) cost that a new franchisee pays to the franchisor. This fee is usually due at the signing of the franchise agreement and covers the right to use the franchisor's trademarks, name, and related business systems.
- Initial Investment
- $200,200 - $322,000
Definition: The total amount necessary to begin operation of the franchise
What you need to know: The initial investment includes the franchise fee, along with other startup expenses such as real estate, equipment, supplies, business licenses, and working capital. This is outlined in a chart in Item 7 of the FDD, showing a range of possible costs from low to high.
- Net Worth Requirement
Definition: The minimum net worth you must have in order to qualify to become a franchisee of this company
What you need to know: Net worth is the value of a person's assets minus liabilities. Assets include cash, stocks, retirement accounts, and real estate. Liabilities include items like mortgages, car payments, and credit card debt.
- Cash Requirement
Definition: The minimum liquid capital you must have available in order to qualify to become a franchisee of this company.
- Veteran Incentives
- 25% off first-store franchise fee
Definition: A discount or other incentive offered to military veterans who buy a franchise with this company.
- Royalty Fee
Definition: A ongoing fee paid to the franchisor on a regular basis.
What you need to know: Most franchisors require franchisees to pay an ongoing royalty fee, which is detailed in Item 6 of the FDD. This fee is typically a percentage of weekly or monthly gross sales, but may also be a flat weekly, monthly, or annual fee.
- Ad Royalty Fee
Definition: An going fee paid to the franchisor on a regular basis to support advertising or marketing efforts.
What you need to know: This may also be called advertising fee, marketing fee, brand fund fee, and more, but the basic purpose is the same-- to support promotion of the brand systemwide. As with the royalty fee, it is detailed in Item 6 of the FDD, and can be a percentage of weekly or monthly gross sales or a weekly, monthly, or annual fee.
- Term of Agreement
- 10 years
Definition: The length of time your franchise agreement will last.
What you need to know: Franchise terms are typically anywhere from 5 to 20 years in length, but are sometimes instead dependent on factors such as the term of your lease. Once your term is up, you may have the option to renew your agreement, typically for a smaller fee than the original franchise fee.
- Is franchise term renewable?
Training & Support Offered
Franchisors offer initial training programs and a variety of ongoing support options to help franchisees run their businesses.
- On-The-Job Training
- 24 hours
- Classroom Training
- 9 hours
- Ongoing Support
NewsletterMeetings & ConventionsToll-Free LineGrand OpeningOnline SupportSecurity & Safety ProceduresLease NegotiationField OperationsSite SelectionProprietary SoftwareFranchisee Intranet Platform
- Marketing Support
Ad TemplatesNational MediaRegional AdvertisingSocial MediaSEOWebsite DevelopmentEmail MarketingLoyalty Program/App
Additional details about running this franchise.
- Is absentee ownership allowed?
Definition: Absentee ownership means that the franchisee does not actively work in the franchise business or manage day-to-day operations.
- Can this franchise be run from home/mobile unit?
Definition: The business can be run from your home and/or a vehicle, and it is not necessary to have a retail facility, office space, or warehouse.
- Can this franchise be run part time?
Definition: This business can be run by the owner on a part-time basis (less than 40 hours per week) and/or as a side business; it is not necessary for the business to be open/run full-time.
- Are exclusive territories available?
Definition: An exclusive territory is a fixed area in which you are given the right to operate and in which no other units of the same franchise may be opened.
What you need to know: Territory size may be based on factors such as radius, population size, zip codes, and more. Details can be found in Item 12 of the FDD.
Interested in ownership opportunities like Pretzelmaker? Request a free consultation with a Franchise Advisor now.
Franchise 500 Ranking History
Compare where Pretzelmaker landed on this year’s Franchise 500 Ranking versus previous years.
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The spot is located in Downey, California.
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