Charleys Philly Steaks Franchise FDD, Profits & Costs (2025)
Charleys Philly Steaks was founded by Charley Shin in 1986 as a single cheesesteak shop near Ohio State University.
Based in Columbus, Ohio, it has grown into the largest cheesesteak franchise globally. Charleys now operates over 700 locations in the U.S. and 17 countries. The brand began franchising in 1991, offering a scalable and successful business model.
Charleys specializes in made-to-order Philly cheesesteaks, using 100% USDA choice steak or all-white meat chicken.
Initial Investment
How much does it cost to start a Charleys Philly Steaks franchise? It costs on average between $200,000 – $907,000 to start a Charleys Philly Steaks 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. Charleys Philly Steaks offers 3 types of franchises:
| Type of Expenditure | CPS Restaurant Amount | CPSW Restaurant Amount | CPSW Restaurant in a Walmart Location Amount |
|---|---|---|---|
| Initial Franchise Fee | $24,500 | $24,500 | $24,500 |
| Leasehold Improvements | $50,000 to $329,000 | $50,000 to $455,000 | $59,550 to $246,000 |
| Equipment/Furniture/Fixtures | $50,931 to $125,000 | $60,000 to $195,000 | $60,000 to $125,500 |
| POS and Kiosk System | $12,536 to $18,134 | $15,383 to $30,312 | $15,383 to $24,361 |
| Signage | $5,000 to $15,000 | $9,249 to $65,000 | $10,200 to $20,500 |
| Architect | $8,000 to $16,000 | $10,500 to $30,000 | $11,500 to $16,000 |
| Travel and Living Expenses Associated With Initial Training | $4,000 to $6,000 | $4,000 to $6,000 | $4,000 to $6,000 |
| Insurance | $3,500 to $10,000 | $3,500 to $10,000 | $3,500 to $10,000 |
| Deposits and Professional Fees | $1,000 to $7,000 | $1,000 to $8,000 | $1,000 to $6,000 |
| Real Estate Lease | $12,500 to $50,000 | $10,000 to $30,000 | $750 to $1,500 |
| Grand Opening Marketing Package | $7,000 to $10,000 | $7,000 to $10,000 | $7,000 to $10,000 |
| Social Media Advertising | $1,000 to $2,000 | $1,000 to $2,000 | $1,000 to $2,000 |
| Additional Funds (3 month period) | $20,000 to $30,000 | $20,000 to $40,000 | $20,000 to $40,000 |
| Totals | $199,967 to $642,634 | $216,507 to $907,012 | $218,758 to $533,561 |
Average Revenue (AUV)
How much revenue can you make with a Charleys Philly Steaks franchise? A Charleys Philly Steaks franchised restaurant makes on average $845,000 in revenue (AUV) per year.
Here is the extract from the Franchise Disclosure Document:
This compares to $838,000 yearly revenue for similar sandwich franchises. Below are 10 Charleys Philly Steaks competitors as a comparison:
Download the Franchise Disclosure Document
Frequently Asked Questions
How many Charleys Philly Steaks locations are there?
As of the latest data, Charleys Philly Steaks operates over 850 locations worldwide. These include both franchised and company-owned outlets.
The majority of Charleys locations are franchise-owned, contributing significantly to the brand’s global presence. Charleys Philly Steaks has expanded across various markets, including food courts, military bases, and inline locations.
What is the total investment required to open a Charleys Philly Steaks franchise?
The total investment required to open a Charleys Philly Steaks franchise ranges from $200,000 to $907,000.
What are the ongoing fees for a Charleys Philly Steaks franchise?
Charleys Philly Steaks franchisees are required to pay an ongoing royalty fee of 6% of gross sales. This fee applies to all franchise locations and covers the use of the brand, operational support, and other resources provided by the franchisor.
In addition, there is a national marketing fee of 4% of gross sales, which contributes to the overall advertising efforts for the brand, including national promotions and campaigns.
What are the financial requirements to become a Charleys Philly Steaks franchisee?
To become a Charleys Philly Steaks franchisee, you need a minimum net worth of $500,000 and at least $175,000 in liquid capital. These financial requirements ensure that franchisees have the necessary resources to cover both the initial investment and ongoing operational expenses successfully.
How much can a Charleys Philly Steaks franchise owner expect to earn?
The average gross sales for a Charleys Philly Steaks franchise are approximately $0.85 million per location. Assuming a 15% operating profit margin, $0.85 million yearly revenue can result in $127,500 EBITDA annually.
Who owns Charleys Philly Steaks?
Charleys Philly Steaks is owned by Charley Shin, who founded the company in 1986. Charley Shin started the business after discovering Philly cheesesteaks during a trip to New York City. The parent company of Charleys Philly Steaks is Gosh Enterprises, Inc., which also owns other brands like Bibibop Asian Grill.
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