Philly Pretzel Factory Franchise FDD, Profits, Costs & Fees (2024)
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.
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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.
Average Revenue (AUV)
How much revenue can you make with a Philly Pretzel Factory franchise? A Philly Pretzel Factory franchised location generates an average revenue (AUV) of $431,351 per year, with individual store revenues ranging from $118,951 to $1.2 million annually.
It’s important to note that actual earnings can vary based on factors such as location, management efficiency, and local market conditions.
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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.
What are the financial requirements to become a Philly Pretzel Factory franchisee?
To qualify as a Philly Pretzel Factory franchisee,you are required to have a minimum net worth ranging from $150,000 to $300,000, ensuring they possess sufficient overall financial stability.
Additionally, a liquid capital requirement between $40,000 and $100,000 is necessary, indicating readily available funds to cover initial expenses and sustain operations during the startup phase.
How much can a Philly Pretzel Factory franchise owner expect to earn?
The average gross sales for a Philly Pretzel Factory franchise are approximately $0.43 million per location. Assuming a 15% operating profit margin, $0.43 million yearly revenue can result in $65,000 EBITDA annually.
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
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