Fazoli’s Franchise Costs, Fees & Owner Salary (2023)









May 2, 2024



a franchise?


Fazoli's is a distinguished American fast casual restaurant chain renowned for its Italian-American cuisine. Founded in 1988, the brand has established its headquarters in Lexington, Kentucky. Under the ownership of FAT Brands, Fazoli's began its franchising journey in 1991, expanding its reach and allowing entrepreneurs to be a part of the fast-casual Italian dining experience.

The restaurant chain is celebrated for its menu that diverges from classic Italian dishes, embracing Italian-American favorites that cater to a wide range of tastes. Fazoli's offerings include baked pastas, their signature Submarinos sandwiches, and a variety of other foods such as Twice Baked Lasagna, Chicken Parmigiano, and Seasonal Salads, among others. This diverse menu is complemented by their renowned catering services, which provide an array of options for group meals, fresh made pastas, oven-baked pastas, and more, available for pick-up or delivery at participating locations.

In addition to its culinary delights, Fazoli's also prides itself on its innovative approach to customer engagement and satisfaction. In 2017, the brand launched its first app-based loyalty program, complete with mobile ordering capabilities, enhancing the dining experience for its patrons by integrating technology with convenience and rewards.

Fazoli's mission extends beyond serving quality Italian food; it is also committed to creating a positive work environment and fostering career growth. The brand emphasizes the importance of leadership and teamwork, ensuring that "people come first" from management levels down to each team member.

How many



are there?

In 2022, there were
outlets in
the United
States, of which
are franchises, and
are corporate-owned.

What are the




Advertising fee


Initial Franchise Fee ($30,000 to $50,000)

The franchise fee varies depending on the number of restaurants you choose to develop. For 1-2 restaurants, the fee is $50,000. For 3-4 restaurants, it's $40,000. And for 5 or more restaurants, the fee is $30,000.

Royalty (4% to 5% of Gross Sales)

In the first year, the royalty fee is 4%. From the second year onwards, it's 5%.

Advertising (4% of Gross Sales)

The advertising fee is consistently 4%. Out of this, 3% is used in your advertising market, and 1% is applied to the cost of production of marketing materials.

Pre-opening Advertising Fee ($7,500)

This is a one-time fee paid to the company before the restaurant opens.

Remodel and Upgrade (Potential cost between $175,000 to $450,000)

Within the fourth year of your Franchise Agreement, especially if the location is a converted site and not a new build, you may be required to commence and complete a remodel and upgrade of the franchised restaurant to meet the current brand standards.

Note: The fees presented here can be found in the Item 5 of the Franchise Disclosure Document. For a complete list of all the fees borne by the franchisee, please consult the Franchise Disclosure Document.

How much does

it cost

to start a



It costs between
to start a

Fazoli’s offers a variety of franchising opportunities tailored to different business needs and market dynamics. For those considering a venture into the restaurant industry with Fazoli’s, understanding the initial investment is crucial.

  1. Freestanding Fazoli’s Restaurant: This traditional setup, often seen as standalone structures, requires an investment ranging from $1,435,500 to $2,328,500.
  2. In-line/End-cap Fazoli’s Restaurant: Ideal for shopping centers and malls, this option has an investment range of $783,500 to $1,553,500.
  3. Nontraditional Fazoli’s Restaurant: Suited for unique venues like colleges, airports, and casinos, the investment for this type falls between $623,000 and $991,000.
  4. Delivery-Only Fazoli’s Restaurant: Catering to the rising demand for delivery services, this "Ghost Kitchen" model requires an investment ranging from $377,500 to $755,000.

These tables offer insights into various expenditure types, from franchise fees to architectural services, ensuring that potential franchisees have a clear understanding of the financial commitments involved.

Freestanding Fazoli’s Restaurant:

Type of Expenditure Amount
Franchise Fee $30,000 to $50,000
Site Preparation $250,000 to $485,000
Architectural Services $25,000 to $75,000
Cost of the Building $825,000 to $980,000
Furniture, Fixtures, and Equipment $150,000 to $450,000
Information System and related technology $38,000 to $59,000
Training Expenses $10,000 to $35,000
Inventory & Uniforms $15,000 to $30,000
Security Deposits, Utilities and Insurance $5,000 to $27,000
Trade Area Analysis, Sales Projection and Sales Impact Report $15,000
Pre-opening and Opening Advertising $7,500
Additional Funds - 3 Months $60,000 to $120,000
Total $1,435,500 to $2,328,500

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.





to its



Fazoli's, a prominent player in the food and beverage sector, stands out with its robust training and support system. Here's a closer look at what Fazoli’s brings to the table for its franchisees.

Pre-opening Support:

  • Fazoli's provides site selection guidelines and criteria to help franchisees choose the best location.
  • Franchisees receive a set of standard building plans. These encompass layouts, fixtures, furnishings, interior designs, and more, ensuring the establishment resonates with the Fazoli's brand.

Training Initiatives:

  • On-the-job and instructional training is mandatory for all franchisee employees. This training is dynamic, with updates provided through the Online Information Center.
  • Franchisees are equipped with specific training materials, equipment, and supplies to ensure effective training sessions.
  • Continuous learning is a hallmark of Fazoli’s approach. Beyond initial management training, the franchisor emphasizes refresher courses and retraining programs. This ensures that the franchisee's team remains abreast of the latest operational standards.






Franchisees of Fazoli’s do not receive an exclusive territory under the Franchise Agreement. This means they might face competition from other franchisees, outlets owned by the company or its affiliates, or other distribution channels or competitive brands controlled by the company or its affiliates.

The franchisees are allowed to operate a Fazoli’s Restaurant only at the specific site designated in the Franchise Agreement. Any relocation of the restaurant site requires prior approval from the company.

Approval for relocation might be considered if the franchisee adheres to the terms of the Franchise Agreement, is in compliance with any other agreements with the company, and has settled any outstanding payments owed to the company.

Can a



be run as

a passive


The franchise must be actively managed by either the franchisee or an Operating Partner.

While the franchise agreement doesn't mandate the franchisee's personal participation in the direct operation of the restaurant, it does emphasize the importance of either the franchisee or the Operating Partner dedicating their full time, energy, and best efforts to the management of the restaurant.

If the franchisee is a corporation or partnership, an approved Operating Partner must supervise the restaurant's operation.

Furthermore, the restaurant must have a Designated Manager, who may or may not hold an equity interest in the franchise business. This Designated Manager is required to devote their full time, energy, and best efforts exclusively to the management, operation, and financial matters of the Franchise Restaurant.

Related Posts