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Fast Casual

Fazoli's Franchise Cost Breakdown

Complete investment analysis based on official FDD data

Total Investment

$1,638,500 – $2,641,500

Franchise Fee

$50,000

Royalty Rate

5.0%

Initial Investment Range

Low: $1,638,500 High: $2,641,500

The total initial investment to open a Fazoli's franchise ranges from $1,638,500 to $2,641,500, as disclosed in their Franchise Disclosure Document. This includes the one-time franchise fee of $50,000.

Midpoint estimate: $2,140,000

Franchise Fee

$50,000

One-time initial fee

The Fazoli's franchise fee is a one-time upfront payment made to the franchisor when you sign the franchise agreement. This fee grants you the right to operate under the Fazoli's brand and is included in the total initial investment range above.

Ongoing Fees

Royalty Fee

5.0%

of gross revenue

Ad/Marketing Fund

4.0%

of gross revenue

Total Ongoing Fee Burden: 9.0% of gross revenue

Combined royalty and advertising fund contributions before any other fees.

Other Ongoing Fees

Fee Type Rate Type Notes
Royalty 5.0 PCT Payable weekly by electronic funds transfer on or before Wednesday of the next week. Gross Receipts includes all revenues from sales excluding pay telephone receipts, sales/use/excise taxes, approved discounts and coupons, senior citizen discounts, employee meals, and charitable donations.
Advertising and Marketing Fee 4.0 PCT Same frequency as Royalty. Currently 1% allocated for agency compensation fees, marketing support fees, and production. During first 12 months, 3% allocated to local advertising. Nontraditional and Delivery-Only Locations do not pay this specific fee. No additional fees will be imposed for national advertising program unless mutually agreed.
Interest on Late Payments 18.0 PCT Lesser of 18% or such higher rate allowed by law. In California, the highest rate is 10% annually. Payable on all overdue amounts.
Accounting Expenses 4000.0 VARIABLE Due within 90 calendar days after the end of your fiscal year. An annual accounting review by an independent CPA is required.
Additional Assistance 2250.0 VARIABLE If you request operations assistance. $2,250 per member for additional opening assistance; $9,000 for 1 coordinator and 3 associates for continuing opening assistance; $2,500 for a 45-hour workweek for post-opening operational assistance.
Audit Expenses 4000.0 VARIABLE Required to reimburse costs of any audit performed, especially if reports are not furnished timely or if understatement of Gross Receipts exceeds 3%.
Transfer Expenses N/A VARIABLE Reasonable legal, accounting, training and other costs associated with transfer. Due prior to consummation of transfer.
Third Party Transfer Expenses 6000.0 VARIABLE CrunchTime may charge a fee between $5,000 and $7,000 for transfer of license. Due at or before transfer takes place. Payable to CrunchTime.
Brand Technology System Support Services 3275.0 VARIABLE Annual fee paid in quarterly electronic funds transfer payments 30 days prior to beginning of quarter for invoices less than $500. For invoices above $500, fees due within 15 days from receipt. Includes help desk, limited POS updates, Brand Technology System updates, polling and reporting.
Software Subscription Fees 12552.0 VARIABLE Subscription fees for current POS and Back Of House (BOH) software. Annual fee paid to either Company or directly to the vendor. For invoices above $500 from Company, fees due within 15 days from receipt.
Renewal Fee N/A VARIABLE Due no earlier than 9 months nor later than 6 months before the end of the current franchise term. After the initial 15-year term, you have the right to renew for 2 additional 5-year periods.
Remodel/Refurbish 300000.0 VARIABLE At Company's request, but not more often than once every 5 years (or within 4 years under FCEP), and/or upon renewal (within 12 months). Low cost: queuing area, dining room, restroom upgrade. High cost: includes exterior facade/tower, signage, parking lot upgrade.
Failure to De-identify Costs 500.0 FIXED Company costs plus interim license fees of $500 per day. At Company's discretion, they may cure your failure to de-identify restaurant upon termination or expiration of the franchise.
Insurance Default Costs N/A VARIABLE Company has the right to cure your insurance defaults and to recover the costs of curing defaults from you.
Default Costs N/A VARIABLE Possible liquidated damages, costs, late fees or attorneys fees may be incurred upon a default left uncured by franchisee.
Indemnification N/A VARIABLE You must reimburse Company if they incur any expense, including attorney fees and other costs, or are held liable for claims arising out of your franchise operation.
Testing and Inspection Expenses for Non-approved Brand or Item 1500.0 VARIABLE If you request to use a non-approved brand or item. Company has the right to refuse such request and require samples be delivered for testing.
Specific Training courses N/A VARIABLE ServSafe fee at market price. You must reimburse Company for costs of course materials and third party enrollment fees.
Training Cancellation Fee 500.0 FIXED $500 plus cost of training materials and additional non-coverable fees incurred. Charged for any training registration cancelled within 2 weeks of the class start date.

What You Get

Category

Fast Casual

Franchise Score

57

out of 100

Fazoli's operates as a fast-casual Italian restaurant chain specializing in authentic Italian pasta, breadsticks, and salads at affordable prices. The franchise delivers made-to-order Italian comfort food with an emphasis on speed and quality.

Financial Performance (Item 19)

Median Revenue

$1,324,069

per year, per location

Mean Revenue

$1,294,590

per year, per location

Profitability Estimate

Estimated Owner Profit

$63,555

per year

Profit Margin

4.8%

of revenue

Estimation method: benchmark

Estimated ROI (Simple Payback): 33.7 years

Based on midpoint investment of $2,140,000 and estimated annual owner profit of $63,555.

Unit Growth & Failure Rate

Avg. Annual Closure Rate

2.5%

Low risk — below industry average

Net Unit Growth

-13 units

From 2022 to 2024

Unit Activity History

Year Start Opened Closed Transfers End
2022 147 +2 -9 144
2023 144 +2 -6 142
2024 142 +2 -6 134

Is a Fazoli's Franchise Worth It?

Based on the FDD data, here is a data-driven snapshot of the Fazoli's franchise opportunity:

Overall Score

57/100

Moderate opportunity

Est. Payback Period

33.7 yrs

Longer payback

Risk Level

Low

2.5% annual closure rate

Fazoli's shows a moderate score across our evaluation criteria. Careful due diligence is recommended. With median unit revenue of $1,324,069 and a combined fee burden of 9.0% of gross revenue, prospective franchisees should model their own financial projections carefully. For a complete analysis including risk factors, deal-breaker flags, and detailed financial modeling, see the full report.

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