Schlotzsky's
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Founded in 1971, Schlotzsky’s is a pioneer in the fast casual restaurant category, priding itself on its fun, unique, and quirky atmosphere. Schlotzsky’s has created a passionate following amongst customers with over 350 locations in 35 states and four foreign countries. With features including the Lotz Better Table Service unique to this market segment, and new Lotz Better restaurant design, Schlotzsky’s is primed for aggressive, responsible growth.
Schlotzksy’s franchisees have the opportunity to create lasting memories for their guests, as well as becoming an integral part of the community in which they serve. Franchise opportunities are available for individuals and groups with experience in restaurant management and an interest in multi-restaurant ownership of three stores or more.
| |
Operating Units |
12/31/2008 |
12/31/2009 |
12/31/2010 |
|---|
| | Franchised |
323 |
315 |
305 |
| | % Change | -- |
-2.5% |
-3.2% |
| | Company-Owned |
22 |
27 |
29 |
| | % Change | -- |
22.7% |
7.4% |
| | Total |
345 |
342 |
334 |
| | % Change | -- |
-0.9% |
-2.3% |
| | Franchised as % of Total |
93.6% |
92.1% |
91.3% |
Investment Required
The fee for a Schlotzsky’s franchise is $30,000.
Schlotzsky’s provides the following range of investments required to open your initial franchise. The range assumes that all items are paid for in cash. To the extent that you choose to finance any of these expense items, your front-end investment could be substantially reduced.
| |
Item | Established Low Range | Established High Range |
| |
Initial Franchise Fee |
$30,000 |
$30,000 |
| |
Leasehold Improvements |
$182,700 |
$308,200 |
| |
Furniture, Equipment, Graphics and POS |
$134,400 |
$226,000 |
| |
Exterior Signage |
$6,000 |
$33,817 |
| |
Licenses and Permits |
$600 |
$2,000 |
| |
Lease Acquisition / Professional Fees |
$10,000 |
$25,000 |
| |
Supplies and Inventory |
$10,000 |
$20,000 |
| |
Insurance |
$15,000 |
$24,000 |
| |
Deposits |
$2,000 |
$10,000 |
| |
Expenses While Training |
$17,000 |
$32,000 |
| |
Grand Opening Advertising and Promotions Expenditure |
$15,000 |
$15,000 |
| |
Additional Funds (3 Months) |
$39,000 |
$48,000 |
| |
Total Initial Investment |
$461,700 |
$774,017 |
Ongoing Expenses
Schlotzsky’s franchisees pay a monthly royalty fee of 6% of net sales as well as an advertising contribution fee of 4% of net sales. Additional fees include promotions and additional local advertising and promotions.
What You Get–Training and Support
Comprehensive assistance is provided to franchisees in site selection using Strategic Integrated Mapping and Modeling Systems specifically designed for Schlotzsky’s. Assistance is also given with restaurant design and layout.
Schlotzsky’s comprehensive training program includes continuing corporate training and on-site restaurant training, online access to Franchise Partner training tools and development support, and an in-depth operations manual. The initial management training is followed up with ongoing business consultation including business review and performance analysis by the corporate management team and up to four regular consultation visits per year.
Schlotzsky’s helps franchisees stay competitive with provided marketing campaigns and continuing product development. Their innovative, targeted local and national marketing plans are designed to increase customer frequency.
Territory
Schlotzsky’s grants exclusive territories.
Note: The tables and information regarding the number of operating units, investment required, on-going expenses, training and territory grants were taken from the company’s 2011 FDD. The 2011 write-ups will be incorporated into the 2012 Edition of Bond’s Top 100 Franchises publication.
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