Pretzelmaker was founded in 1991 as a single pretzel stand and has since grown to boast over 280 locations across the United States and internationally. Headquartered in Atlanta, Georgia, Pretzelmaker began franchising shortly after its inception, allowing entrepreneurs to bring the beloved pretzel experience to various communities.

The franchise is renowned for its innovative Pretzel Bites, which are made from scratch daily using a unique recipe that sets them apart from competitors. These bite-sized snacks, along with a variety of other pretzel products, have helped Pretzelmaker carve out a distinctive niche in the quick-service food industry. The brand focuses on creating a fun and engaging atmosphere, particularly targeting teens, young adults, and moms.

Pretzelmaker’s differentiation comes not only from its high-quality, freshly made products but also from its vibrant and playful brand personality. The company maintains a strong presence on social media with witty and engaging content that resonates with its core audience, ensuring that customers keep coming back for more.

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Initial investment

Here’s what you can expect to spend to start a Pretzelmaker franchise.

Note: The table above provides a snapshot of the main costs associated with starting the most common franchise format (as disclosed in the Item 7 of the Franchise Disclosure Document). For a complete overview of all the expenses involved with the various formats offered by the franchisor, please consult the Franchise Disclosure Document.

Franchise fees & Royalties

Here are the main ongoing fees the franchisor will ask you to pay going forward to run the franchise.

Initial Franchise Fee

The initial franchise fee for a Pretzelmaker franchise is $25,000 for both Traditional and Non-Traditional Restaurants. This fee is fully earned when paid and is not refundable under any circumstances.

Royalty Fee

The royalty fee is 7% of total net sales, payable on the second Tuesday after each weekly accounting period. Interest on any overdue amount is 1.5% per month, with a late fee of $25 per week.

Marketing/Advertising Fee

Currently, 2% of total net sales is allocated to the National Advertising Fund, payable on the second Tuesday after each weekly accounting period. The local advertising fee is also 2% of total net sales, with expenditures required to be reported no later than 30 days after the end of each 6-month period.

National Branding Fee

The National Advertising Fund fee mentioned above serves as the national branding fee, set at 2% of total net sales.

Technology Fee

The Brand Technology System Support Services fee ranges from $840 to $1,500 per year, paid annually in quarterly installments. This mandatory service includes Help Desk support.

Renewal Fees

The renewal fee is 40% of the then-current initial franchise fee. For a Satellite Restaurant, the renewal fee is $2,500, payable upon signing a successor Franchise Agreement.

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Franchise pros and cons

Pros

• Flexible business model: Pretzelmaker allows franchisees to choose the most suitable store model depending on their preferences. The flexible business model allows franchisees to sell soft pretzels from virtually any location. Traditional (for example, a small store in a shopping mall) and non-traditional (for example, a kiosk-sized store in an airport) franchising models ensure franchisees only choose what’s best for their target market. 
• Modern supply chain: the franchisor offers a modern, well-coordinated, and built-in supply chain to reduce costs and maximize efficiency. 
• An expansive corporate network for comprehensive support: the franchisor has a complete support system to help brand owners launch their stores from the ground. The investment journey starts from the pre-opening phase and won’t end until the restaurant owner has opened a successful franchise. 
• Training: Pretzelmaker offers quality training to help franchisees learn the basics of restaurant management. Franchisees must complete the food training course and at least 3 days of on-the-job training to satisfy the franchisor’s requirements for opening a franchise. The franchisor may schedule an advanced training program if they deem it fit. 

Cons

• Full-time investment: store owners can’t run the business part-time. Franchisees must devote their time, skills, and effort to running the business. 
• No exclusive territory: the franchisor doesn’t grant restaurant owners exclusive territories. Franchisees may compete for clients with other brands operating in the same area. 
• No financial assistance: the franchisor doesn’t provide direct or indirect financing. It doesn’t arrange for any third-party funding and has no intention to sell, assign, or source any part of the financial arrangement to its affiliates. 
• No absentee ownership: the franchisor expects restaurant owners to be actively involved in all the practical aspects of the business operation from physical locations. 
• No part-time operations: Pretzelmaker doesn’t allow passive or part-time business operations. Franchisees must demonstrate a solid commitment to running the franchise as a full-time investment, operating within the specified working hours.
• Competition: despite its strong brand appeal, Pretzelmaker is rivaled by other competitive pretzels brands such as Wetzel’s Pretzels and Auntie Anne’s.

How to open a Pretzelmaker franchise

Opening a Pretzelmaker franchise involves several steps, designed to ensure you are a good fit for the franchise. Here are the main steps to follow to open a Pretzelmaker franchise.

1. Research and Initial Inquiry

• Visit the Pretzelmaker website: Start by gathering information about the franchise, its requirements, and benefits.
• Contact Pretzelmaker: Fill out the franchise inquiry form or contact their franchise development team to express your interest and ask any initial questions.

2. Review Franchise Disclosure Document (FDD)

• Receive the FDD: After expressing interest, Pretzelmaker will provide you with a Franchise Disclosure Document.
• Thoroughly review the FDD: This document contains crucial information about fees, obligations, and the franchisor’s history. Consider consulting with a franchise attorney or consultant.

3. Application and Approval

• Submit a formal application: Complete the franchise application provided by Pretzelmaker.
• Financial qualifications: Ensure you meet the financial requirements, including net worth and liquid capital.
• Background checks and interviews: Participate in background checks and interviews as part of the approval process.

4. Secure Financing

• Explore financing options: Look into various financing options, such as SBA loans, traditional bank loans, or using personal savings.
• Create a business plan: Develop a comprehensive business plan to present to potential lenders if needed.

5. Site Selection and Lease Negotiation

• Work with Pretzelmaker’s real estate team: Utilize their expertise to find a suitable location.
• Negotiate lease terms: Secure favorable lease terms for your franchise location with the assistance of Pretzelmaker’s team.

6. Training and Setup

• Complete initial training: Attend Pretzelmaker’s training program, which covers operations, marketing, and management.
• Set up your store: Follow the franchisor’s guidelines to set up your store, including purchasing equipment and fixtures.

Disclaimer

Disclaimer: This content has been made for informational and educational purposes only. 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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