Complete investment analysis based on official FDD data
Total Investment
$647,875 – $1,951,300
Franchise Fee
$35,500
Royalty Rate
6.0%
The total initial investment to open a Schlotzsky's franchise ranges from $647,875 to $1,951,300, as disclosed in their Franchise Disclosure Document. This includes the one-time franchise fee of $35,500.
Midpoint estimate: $1,299,588
$35,500
One-time initial fee
The Schlotzsky'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 Schlotzsky's brand and is included in the total initial investment range above.
Royalty Fee
6.0%
of gross revenue
Ad/Marketing Fund
0.5%
of gross revenue
Total Ongoing Fee Burden: 6.5% of gross revenue
Combined royalty and advertising fund contributions before any other fees.
| Fee Type | Rate | Type | Notes |
|---|---|---|---|
| Royalty Fee | 6.0 | PCT | Payable weekly on Payment Due Date. Includes sales from Cinnabon Express Bakery if operated in Restaurant. |
| Advertising Contribution | 4.0 | PCT | Currently 4% but may be increased to up to 5% at franchisor's discretion with notice. |
| Marketing Technology (Mar-Tech) Fee | 230.0 | FIXED | Covers Learning Management System, e-mail marketing, mobile apps, online/catering ordering platforms. May change by Allowed Adjustment annually. |
| Local Advertising Group (LAG) Contribution | N/A | VARIABLE | Amount determined by LAG vote. All LAG members have voting rights. |
| Local Marketing Obligation | 0.5 | PCT | Minimum local market advertising spend. If not met, franchisor may spend on behalf and bill franchisee. |
| Promotions and Advertising Materials | N/A | VARIABLE | For promotional campaigns including limited time offers, gift cards, coupons, loyalty programs. |
| Insufficient Funds Fee | N/A | VARIABLE | Charged when EFT draft fails due to insufficient funds. |
| Interest | 1.5 | PCT | Lesser of 1.5% per month or maximum legal interest rate on amounts past due. |
| Late Reporting Fee | 50.0 | FIXED | For failure to submit timely reports, financial statements, tax returns. May change by Allowed Adjustment. |
| Taxes and Other Payments | N/A | VARIABLE | Covers sales taxes, corporate taxes, franchise taxes, marketplace facilitator taxes paid by franchisor on behalf of franchisee. Due within 10 days after demand. |
| Subsequent Trainee Management Training Fee | 250.0 | FIXED | For training new Manager, Primary Contact, Director of Operations after restaurant opens. May change by Allowed Adjustment. |
| On-Site Training and Assistance Fee | 500.0 | FIXED | For additional on-site training beyond required training. May change by Allowed Adjustment. |
| Additional Support/Consulting Fee | 500.0 | FIXED | For consultation services beyond standard support. May change by Allowed Adjustment. |
| Conference/Program Fee | N/A | VARIABLE | For conferences, conventions, programs, training sessions. Currently ranges from $0 to $2,500 per attendee. May change by Allowed Adjustment. |
| Training Cancellation Fee | N/A | VARIABLE | If training not cancelled at least 14 days prior or franchisee not prepared. May require repayment for rescheduled training. |
| Sublease Administration Fee | 200.0 | FIXED | If franchisee subleases from franchisor. Covers administrative expenses, in addition to rent and other sublease fees. May change by Allowed Adjustment. |
| Lease Renewal/Extension Review Fee | N/A | VARIABLE | For lease renewals/extensions of 12+ months. Ranges from $500 (2 years or less) to $2,000 (5+ years). May change by Allowed Adjustment. |
| Lease Documentation Late Fee | 500.0 | FIXED | If signed lease not provided within 15 days of execution. Continues until documentation delivered. |
| Relocation Fee | 10.0 | PCT | If franchisee relocates to new approved site. |
| Relocation Extension Fee | 1500.0 | FIXED | If franchise term extended to match new lease upon relocation. In addition to Relocation Fee. |
| Refresh/Remodel Site Survey and Design Fee | N/A | VARIABLE | For required refresh every 5 years and remodel every 10 years. Currently $1,200-$6,000. May change by Allowed Adjustment. |
| Transfer Fee | 50.0 | PCT | Control Transfer includes transfer of franchise agreement, restaurant, >20% ownership, or change of control. |
| Renewal Fee | 20.0 | PCT | Payable before signing renewal Franchise Agreement. |
| Computer Systems Fee | N/A | VARIABLE | For modifications, enhancements, maintenance and support of Computer System. Will not exceed 110% of actual costs. |
| POS System License and Lease Fees | N/A | VARIABLE | CapEx Program: $530-$672/month (software license). HaaS Program: $1,316-$1,534/month (software + hardware lease). Includes 0.5% admin fee. |
| POS System Support Fee | N/A | VARIABLE | For POS software/hardware support including helpdesk, troubleshooting, menu management, third-party integrations, sales data collection. |
Category
Fast Casual
Franchise Score
out of 100
Schlotzsky's operates as a fast-casual deli and sandwich restaurant chain known for its signature oval-shaped sandwiches, pizzas, and salads made with fresh ingredients. The franchise focuses on customizable menu items and a distinctive casual dining atmosphere.
Median Revenue
$1,054,269
per year, per location
Mean Revenue
$1,126,331
per year, per location
Estimated Owner Profit
$142,326
per year
Profit Margin
13.5%
of revenue
Estimation method: benchmark
Estimated ROI (Simple Payback): 9.1 years
Based on midpoint investment of $1,299,588 and estimated annual owner profit of $142,326.
Avg. Annual Closure Rate
3.2%
Moderate risk — near industry average
Net Unit Growth
-300 units
From 2022 to 2025
| Year | Start | Opened | Closed | Transfers | End |
|---|---|---|---|---|---|
| 2022 | 300 | +8 | -7 | — | 299 |
| 2023 | 299 | +8 | -10 | — | 295 |
| 2024 | 295 | +4 | -12 | — | 280 |
| 2025 | — | +6 | — | — | — |
Based on the FDD data, here is a data-driven snapshot of the Schlotzsky's franchise opportunity:
Overall Score
60/100
Moderate opportunity
Est. Payback Period
9.1 yrs
Longer payback
Risk Level
Medium
3.2% annual closure rate
Schlotzsky's shows a moderate score across our evaluation criteria. Careful due diligence is recommended. With median unit revenue of $1,054,269 and a combined fee burden of 6.5% 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.
Get the full Schlotzsky's franchise intelligence report with risk analysis, deal-breaker alerts, and detailed financial projections.
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