Philly Pretzel Factory Franchise FDD, Profits & Costs (2025)
Philly Pretzel Factory was founded in 1998 in Philadelphia, Pennsylvania. Known for its freshly baked, hand-twisted soft pretzels, the brand quickly gained popularity.
Franchising began in 2004, helping the company expand beyond its original location. The headquarters is in Bensalem, Pennsylvania, with over 170 franchised locations across the U.S. today.
The menu features soft pretzels, pretzel dogs, cheesesteak pretzels, and a variety of dips. Philly Pretzel Factory stands out for its focus on quality and freshness. Pretzels are made daily with high-quality ingredients. This dedication has earned the brand a loyal customer base in the snack food industry.
The franchise offers opportunities across the U.S. Franchisees receive training, site selection help, marketing support, and operational guidance. This system ensures strong franchise performance, driving the brand’s growth and success.
Initial Investment
How much does it cost to start a Philly Pretzel Factory franchise? It costs on average between $134,000 – $351,000 to start a Philly Pretzel Factory franchised facility.
This estimate encompasses expenses such as construction, equipment, inventory, and initial operating costs. The exact amount varies based on factors like the store format, location, and whether you opt to lease or purchase the property.
Philly Pretzel Factory offers 4 types of franchises:
| Type of Philly Pretzel Factory | Initial Investment Range |
|---|---|
| Single Traditional Full-Production Philly Pretzel Factory | $223,892 to $406,715 |
| Single Traditional Oven-Ready Philly Pretzel Factory | $171,159 to $265,541 |
| Single Full-Production Philly Pretzel Factory Located in a Non-Traditional Location | $219,847 to $382,211 |
| Single Oven-Ready Philly Pretzel Factory Located in a Non-Traditional Location | $134,569 to $196,657 |
We are summarizing below the main costs associated with opening a traditional Philly Pretzel Factory. For more information on costs required to start a Philly Pretzel Factory franchise, refer to the Franchise Disclosure Document (Item 7).
| Type of Expenditure | Amount |
|---|---|
| Initial Franchise Fee | $35,000 |
| Rent | $1,100 to $7,500 |
| Lease Deposit | $1,100 to $15,000 |
| Architect Fees | $5,000 to $11,000 |
| Construction/Leasehold Improvements | $48,681 to $135,000 |
| Equipment | $51,354 to $137,491 |
| Computer System, Office Supplies & Miscellaneous Equipment | $1,624 to $2,224 |
| Promotional Materials | $500 to $1,500 |
| Grand Opening Advertising Requirement | $5,000 |
| Permits and Licenses | $400 to $4,000 |
| Training Expenses | $100 to $1,000 |
| Signage | $3,200 to $10,000 |
| In-Store Camera Surveillance System | $500 to $1,000 |
| Prepaid Insurance Premium | $3,000 to $5,000 |
| Utility and Telephone Deposits | $500 to $2,000 |
| Legal Costs | $500 to $1,500 |
| Initial Inventory | $3,500 to $7,500 |
| Additional Funds | $10,000 to $25,000 |
| Total | $171,159 to $406,715 |
Download the Franchise Disclosure Document
Frequently Asked Questions
How many Philly Pretzel Factory locations are there?
As of the latest data, Philly Pretzel Factory operates over 100 locations across the United States. The majority of these are franchise-owned, with a smaller number managed directly by the company. This expansion reflects the brand’s growth and popularity in delivering authentic Philadelphia-style soft pretzels nationwide.
What is the total investment required to open a Philly Pretzel Factory franchise?
The total investment required to open a Philly Pretzel Factory franchise ranges from $134,000 to $351,000.
What are the ongoing fees for a Philly Pretzel Factory franchise?
Philly Pretzel Factory franchise entails ongoing financial commitments to the franchisor. Franchisees are required to pay a royalty fee of 6% of their gross sales, which grants them continued access to the brand’s established systems, support, and trademarks.
Additionally, there is a marketing fee set at 2% of gross sales, allocated towards national and regional advertising efforts to enhance brand visibility and drive customer engagement.
Who owns Philly Pretzel Factory?
Philly Pretzel Factory is owned by Soft Pretzel Franchise Systems Inc., with Dan DiZio, the co-founder, serving as the CEO.
Disclaimer
Disclaimer: This content has been made for informational and educational purposes only. SharpSheets is an independent educational resource and is not affiliated with, endorsed by, or representing any franchisor mentioned on this website. Where noted, figures are taken from the franchisor’s Franchise Disclosure Document (FDD). In some cases, we may provide independent calculations or estimates based on publicly available information. We do not make any representation or warranties with respect to the accuracy, applicability, fitness, or completeness of the information presented in the article. You should not construe any such information or other material as legal, tax, investment, financial, or other professional advice. Nothing contained in this article constitutes a solicitation, recommendation, endorsement, advertisement, or offer to buy or sell any franchises, securities, or other financial instruments in this or in any other jurisdiction in which such solicitation or offer would be unlawful under the franchise and/or securities laws of such jurisdiction.
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