Wetzel’s Pretzels Franchise FDD, Profits & Costs (2025)
Wetzel’s Pretzels, founded in 1994 by Rick Wetzel and Bill Phelps, has grown into a well-known franchise in the fast-food industry, specializing in fresh, hand-rolled pretzels. Headquartered in Pasadena, California, Wetzel’s Pretzels began franchising in 1996.
The franchise distinguishes itself by offering a fun and simple business model that serves a variety of pretzels, dips, and beverages, all made with high-quality ingredients.
The brand’s focus on offering freshly made products in high-traffic areas like malls, airports, and entertainment venues has allowed it to cultivate a broad consumer base.
Wetzel’s Pretzels’ operations are designed to be efficient, requiring relatively low startup and operational costs compared to other food franchises. This efficiency, combined with their commitment to quality and customer service, has helped the brand secure a competitive edge in the snack food sector.
Initial Investment
How much does it cost to start a Wetzel’s Pretzels franchise? It costs on average between $62,000 – $712,000 to start a Wetzel’s Pretzels 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, Wetzel’s Pretzels offers 2 types of franchises:
| Franchise Model | Initial Investment Range |
|---|---|
| WETZEL’S PRETZELS® Bakery | $183,000 to $710,450 |
| Remote Mobile Unit | $62,000 and $144,500. |
| WETZEL’S PRETZELS® Concession Truck or Trailer | $172,125 to $317,900 |
We are summarizing below the main costs associated with opening a Wetzel’s Pretzels franchised restaurant. For more information on the costs required to start a Wetzel’s Pretzels franchise, refer to the Franchise Disclosure Document (Item 7).
| Type of Expenditure | Amount |
|---|---|
| Initial Franchise Fee | $20,000 – $40,000 |
| Lease Review Fee | $3,500 – $7,000 |
| Business Premises | $5,000 – $25,000 |
| Leasehold Improvements | $50,000 – $400,000 |
| Food Preparation Equipment | $53,000 – $95,000 |
| Utility Deposits, Licenses, Permits | $1,000 – $15,000 |
| Insurance | $500 – $2,500 |
| Signs & Menu Boards | $5,000 – $17,000 |
| Digital Display Boards | $5,000 – $7,500 |
| POS System | $500 – $1,000 |
| Initial Inventory & Smallwares | $5,500 – $12,000 |
| Training Fee for Additional Trainee | $0 – $750 |
| Training Expenses | $1,000 – $4,000 |
| Grand Opening Advertising | $500 – $2,500 |
| Office Equipment & Supplies | $500 – $2,500 |
| Professional Fees | $1,000 – $3,200 |
| Architect, Engineers & Construction Manager | $6,000 – $22,000 |
| Additional Funds (First 90 Days) | $25,000 – $55,500 |
| Total Estimated Initial Investment | $183,000 – $712,450 |
Average Revenue (AUV)
How much revenue can you make with a Wetzel’s Pretzels franchise? A Wetzel’s Pretzels franchised restaurant makes on average $727,000 in revenue (AUV) per year.
Here is the extract from the Franchise Disclosure Document:
This compares to $788,000 yearly revenue for similar baked goods franchises. Below are a few Wetzel’s Pretzels competitors as a comparison:
Download the Franchise Disclosure Document
Frequently Asked Questions
How many Wetzel’s Pretzels locations are there?
As of the latest data, Wetzel’s Pretzels operates approximately 389 locations, with the majority of these being franchise-owned. Only a small portion of the stores are company-owned, reflecting Wetzel’s focus on franchise expansion.
The company is continuing its growth, aiming to reach 400 total locations, with plans to increase its presence through non-traditional outlets such as food trucks and retail locations like Walmart and Macy’s.
What is the total investment required to open a Wetzel’s Pretzels franchise?
The total investment required to open a Wetzel’s Pretzels franchise ranges from $62,000 to $712,000.
What are the ongoing fees for a Wetzel’s Pretzels franchise?
A Wetzel’s Pretzels franchisee is required to pay several ongoing fees, including a royalty fee and an advertising fee. The royalty fee is set at 7% of gross sales, which covers the use of Wetzel’s brand, operational support, and other resources provided by the franchisor.
Additionally, franchisees contribute to the advertising fund through an advertising fee of 1% of gross sales. This fee supports national marketing initiatives aimed at promoting the brand and driving customer traffic to individual locations.
What are the financial requirements to become a Wetzel’s Pretzels franchisee?
To become a Wetzel’s Pretzels franchisee, the financial requirements include having a minimum net worth of $350,000 and at least $100,000 in liquid assets. These requirements are in place to ensure that potential franchisees have the necessary financial stability to manage the upfront investment and ongoing operations of a Wetzel’s Pretzels location.
How much can a Wetzel’s Pretzels franchise owner expect to earn?
The average gross sales for a Wetzel’s Pretzels franchise are approximately $0.73 million per location. Assuming a 15% operating profit margin, $0.73 million yearly revenue can result in $110,000 EBITDA annually.
Who owns Wetzel’s Pretzels?
Wetzel’s Pretzels is owned by CenterOak Partners, a Dallas-based private equity firm. CenterOak acquired the majority stake in Wetzel’s Pretzels in 2016, taking over from the previous owners, Levine Leichtman Capital Partners. This acquisition was part of a strategy to expand the brand’s presence in both traditional and non-traditional venues, such as malls, food trucks, and retail locations.
Disclaimer
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