Is
Fazoli’s
a franchise?
How many
Fazoli’s
franchises
are there?
What are the
Fazoli’s
franchise
fees?
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
Fazoli’s
franchise?
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.
- Freestanding Fazoli’s Restaurant: This traditional setup, often seen as standalone structures, requires an investment ranging from $1,435,500 to $2,328,500.
- 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.
- 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.
- 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:
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.
Does
Fazoli’s
provide
training
to its
franchisees?
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.
Does
Fazoli’s
provides
territory
protection?
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
Fazoli’s
franchise
be run as
a passive
investment?
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.
