Schlotzsky’s Franchise Franchise FDD, Profits & Costs (2025)
Schlotzsky’s Bakery Café is a prominent player in the fast-casual restaurant sector, known for its unique and flavorful sandwiches.
Founded in 1971 by Don and Dolores Dissman in a small shop on South Congress Avenue in Austin, Texas, Schlotzsky’s initially gained popularity with its distinctive eight-inch round sandwich called “The Original.”
The brand quickly became an innovator in the fast-casual dining space, offering customers a quirky and fun dining experience with high-quality, affordable meals.
In 1976, Schlotzsky’s began franchising, expanding its reach and establishing a loyal customer base across the United States.
Today, it operates over 350 locations in 37 states and several international markets. The brand is a subsidiary of FOCUS Brands, which also owns well-known chains like Auntie Anne’s, Cinnabon, and Jamba Juice, providing robust franchise support and resources.
Schlotzsky’s differentiates itself from competitors through its commitment to fresh, high-quality ingredients and a diverse menu that includes a variety of sandwiches, pizzas, salads, and soups.
Additionally, the franchise offers co-branding opportunities with Cinnabon, enhancing its market appeal and drawing in a broader customer base.
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Initial Investment
How much does it cost to start a Schlotzsky’s franchise? It costs on average between $569,000 – $1,852,000 to start a Schlotzsky’s franchised restaurant.
This includes costs for construction, equipment, inventory, and initial operating expenses. The exact amount depends on various factors, including the type of restaurant you choose, the location, and whether the franchisee chooses to lease or purchase the property. Indeed, Schlotzsky’s offers 2 types of franchises:
| Location Type | Initial Investment Range |
|---|---|
| Restaurant at an Endcap or Inline Shopping Center | $568,600 to $1,265,340 |
| Restaurant at a Newly-Constructed Freestanding Location | $1,284,750 to $1,851,750 |
We are summarizing below the main costs associated with opening a Schlotzsky’s franchised Restaurant at a newly constructed freestanding location. For more information on costs required to start a Schlotzsky’s franchise, refer to the Franchise Disclosure Document (Item 7).
| Type of Expenditure | Low Amount | High Amount |
|---|---|---|
| Initial Franchise Fee | $35,500 | $35,500 |
| Construction and Build Out Costs | $193,050 | $526,500 |
| Permitting | $1,800 | $11,000 |
| Equipment Package | $87,750 | $170,820 |
| Millwork | $40,500 | $53,820 |
| Furniture | $17,550 | $35,100 |
| Menu Board, Graphics and Interior Signage | $12,000 | $22,600 |
| Exterior Signage | $20,400 | $46,800 |
| Computer System | $26,000 | $60,000 |
| Smallwares | $6,700 | $7,500 |
| TV/Music | $2,000 | $3,000 |
| Architect/Engineer | $5,000 | $50,000 |
| Rent | $5,000 | $15,600 |
| Grand Opening Marketing | $15,000 | $25,000 |
| Legal and Accounting Fees | $3,000 | $12,000 |
| Insurance | $1,750 | $8,800 |
| Misc. Opening Costs/Office Supplies | $500 | $5,000 |
| Security Deposits | $7,000 | $10,000 |
| Training Fees | $0 | $5,200 |
| Travel and Living Expenses during Training | $10,000 | $40,000 |
| Opening Inventory | $7,500 | $25,000 |
| Cinnabon Express Bakery Initial Franchise Fee | $8,000 | $8,000 |
| Cinnabon Express Bakery | $23,600 | $40,100 |
| Additional Funds – 3 Months | $39,000 | $48,000 |
| Total Initial Investment | $568,600 | $1,265,340 |
Average Revenue (AUV)
How much revenue can you make with a Schlotzsky’s franchise? A Schlotzsky’s franchised restaurant makes on average $994,000 in revenue (AUV) per year.
Here is the extract from the Franchise Disclosure Document:
This compares to $799,000 yearly revenue for similar baked goods franchises. Below are 10 Schlotzsky’s competitors as a comparison:
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Schlotzsky’s Bakery Café Franchise Disclosure Document
Frequently Asked Questions
How many Schlotzsky’s locations are there?
As of the latest data, there are 336 Schlotzsky’s locations in the United States. 207 of these locations are in Texas, accounting for approximately 62% of the total. The remaining locations are distributed across 25 other states and territories.
What is the total investment required to open a Schlotzsky’s franchise?
The total investment required to open a Schlotzsky’s franchise ranges from $569,000 to $1,852,000.
What are the ongoing fees for a Schlotzsky’s franchise?
A Schlotzsky’s franchise requires an ongoing royalty fee of 6% of gross sales. Additionally, franchisees must pay a marketing fee, which is 5% of gross sales. These fees are applied to support brand operations and marketing efforts.
What are the financial requirements to become a Schlotzsky’s franchisee?
To become a Schlotzsky’s franchisee, you are generally required to have a minimum net worth of $1.5 million and at least $500,000 in liquid capital. These financial requirements are designed to ensure that potential franchisees have the financial capacity to support the franchise’s operations and growth effectively.
How much can a Schlotzsky’s franchise owner expect to earn?
The average gross sales for a Schlotzsky’s franchise are approximately $0.99 million per location. Assuming a 15% operating profit margin, $0.99 million yearly revenue can result in $145,500 EBITDA annually.
Who owns Schlotzsky’s?
Schlotzsky’s is owned by Focus Brands, a parent company that owns a variety of food service brands including Cinnabon, Auntie Anne’s, and Carvel. Focus Brands acquired Schlotzsky’s as part of its portfolio of franchised and company-owned restaurants.
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