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- 2023 Franchise 500 Rank
#202 Ranked #301 last year
- Initial investment
$523K - $1.6M
- Units as of 2022
323 8% over 3 years
Here’s what you need to know if you’re interested in opening a Schlotzsky's franchise.
Schlotzsky’s is a restaurant founded in 1971 by Don and Dolores Dissman. It prides itself on a special menu that leaves customers full and satisfied. Schlotzsky's menu items include sandwiches, salads, soups, pizzas, vegetarian dishes, and desserts.
Schlotzsky’s has been in the franchise business since 1976, and it has over 300 franchise units in the United States. It is a fast food joint and a subsidiary of Focus Brands.
If you are looking to franchise a fast food restaurant, Schlotzsky's might be just what you are looking for. Before starting your Schlotzsky's franchise, you will complete comprehensive training to perfect your restaurant skills and experience.
Why You May Want to Start a Schlotzsky's Franchise
Schlotzsky's food items use quality ingredients, giving them a unique taste. The restaurants are designed to make Schlotzsky's an attractive hangout for family nights and date nights alike.
Customers are continually looking for a quick lunch or dinner due to busy work schedules. Many families now prefer take-out to home-prepared meals due to other commitments. Schlotzskys, being a well-known brand, gives franchisees an excellent opportunity to provide take-out meals to hungry diners.
Additionally, Schlotzsky’s has been ranked on Entrepreneur’s Franchise 500 every year since 2013. This ranking is based on an evaluation of more than 150 data points in the areas of costs and fees, size and growth, franchisee support, brand strength, and financial strength and stability.
You don't need prior restaurant or franchising experience to franchise with Schlotzsky’s. The company offers exclusive training to franchisees, both on the job and in classroom sessions. However, you will need a few experienced people on your team to run the restaurant with the greatest efficiency.
What Might Make a Schlotzsky's Franchise a Good Choice?
Before you make any investments, you should consult your financial planner and attorney to review your decision to franchise with Schlotzsky’s.
Franchisees need to meet company set liquid cash requirements, along with the financial investment required to open a Schlotzsky’s franchise. With your financial investment, you may receive third-party financing for your franchise fee, startup costs, equipment, inventory, and payroll.
How To Start a Schlotzsky's Franchise
As you make your decision concerning franchising with Schlotzsky’s, make sure you take time to explore the opportunity. Research the brand and your local area to see if a franchise would do well in your community. You want to make sure that the community around you would react positively to a new fast food restaurant and that there’s not too much competition already.
Progression through the franchise process may look different for everyone, but you can expect various interviews and discussions with the executive management of Schlotzsky's. You may also receive a tour of corporate headquarters in Atlanta, Georgia and an existing Schlotzsky's location.
After final approval to franchise with Schlotzsky’s, the company will identify the most suitable location to build the franchise. Additionally, Schlotzsky’s will offer comprehensive training for four weeks to you and your team. This will help you familiarize yourself with the franchise operations. Once you are through with the training, you will be ready to open the doors of your Schlotzsky's franchise.
- Franchising Since
- 1976 (47 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
- 323 (as of 2022)
Information for Franchisees
Here’s what you need to know if you’re interested in opening a Schlotzsky's 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
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
- $522,570 - $1,635,380
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
- $1,000,000 - $1,900,000
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
- $300,000 - $650,000
Definition: The minimum liquid capital you must have available in order to qualify to become a franchisee of this company.
- Veteran Incentives
- $15,500 off 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
- 20 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?
- Third Party Financing
- Schlotzsky's has relationships with third-party sources which offer financing to cover the following: franchise fee, startup costs, equipment, inventory, accounts receivable, payroll
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
- 200 hours
- Classroom Training
- 50 hours
- Ongoing Support
NewsletterMeetings & ConventionsToll-Free LineGrand OpeningOnline SupportSecurity & Safety ProceduresLease NegotiationField OperationsSite SelectionProprietary SoftwareFranchisee Intranet Platform
- Marketing Support
Co-op AdvertisingAd 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 Schlotzsky's? Request a free consultation with a Franchise Advisor now.
Franchise 500 Ranking History
Compare where Schlotzsky's landed on this year’s Franchise 500 Ranking versus previous years.
Curious to know where Schlotzsky's ranked on other franchise lists? Find out below.
Are you eager to see what else is out there? Browse franchises that are similar to Schlotzsky's.
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