Pretzelmaker Franchise Costs, Fees & Owner Salary (2023)

Initial Franchise Fee ($25,000 to $30,000)

‍The initial franchise fee varies depending on the type of store you are opening. Traditional stores have a fee of $30,000, while non-traditional stores (like those in airports or stadiums) have a fee of $25,000.

Royalty Fee (6% of Net Sales)

‍Franchisees are required to pay a royalty fee equal to 6% of their Net Sales. This fee is in consideration of the ongoing right to use the Pretzelmaker Marks and the System. "Net Sales" encompasses all revenue from the sale of products and services related to the franchisee's business activities under the agreement.

Advertising Fee (2% of Net Sales + 1.5% Local Marketing Requirement)

‍Franchisees must contribute 2% of their Net Sales to the Pretzelmaker Brand and Marketing Fund. This fund is used for creating and disseminating advertising and promotional materials, among other marketing-related activities. Additionally, franchisees are required to spend a minimum amount on local marketing, which varies based on the location and specific circumstances of the store.

Transfer Fee ($2,000 to $5,000 per Store)

‍In the event of a transfer of ownership or control of the store, a transfer fee is applicable. The fee is $2,000 for administrative costs in reviewing the proposal for a partial ownership transfer. For a complete business transfer or a change of control in an entity, the fee is $5,000 per store, with a cap of $75,000 for transfers of more than 5 stores or transfers to an existing franchisee.

Successor Fee ($7,500)

‍Upon executing a successor franchise agreement, franchisees are required to pay a successor fee of $7,500.

Pretzelmaker offers two distinct franchise options: Traditional Restaurant and the Non-traditional Restaurant. Each comes with its own set of initial investment requirements. Let's delve into the details of these investment breakdowns to provide a clearer picture for potential franchisees.

Traditional Restaurant  Investment:

The Single Store option is the more traditional franchise model, where you operate a standalone store. The estimated initial investment for this option ranges from $200,200 to $322,000. This cost includes expenses such as the franchise fee, dough ingredients, architectural fees, and additional funds for the first three months of operation.

Non-traditional Restaurant Investment:

For those looking to set up a smaller operation within a shopping center or venue, the Satellite Location is an ideal choice. The estimated initial investment for this option ranges from $96,000 to $193,394.

This model includes costs for the kiosk structure, pretzel ingredients, furniture, fixtures, equipment, and decor. Additionally, it accounts for the computer system and additional funds for the first three months.

Both franchise options come with their own set of advantages, and the choice largely depends on the franchisee's budget, location preference, and business goals. It's crucial to factor in all these costs when planning your Pretzelmaker franchise journey.

For a detailed breakdown of the costs associated with each franchise option, refer to the tables provided below.

Investment Breakdown:

If you've ever considered joining the Pretzelmaker family as a franchisee, here's a closer look at the training and support they offer.

Before the doors of your Pretzelmaker store even open, the brand ensures you're on the right track. Choosing the right location can make all the difference, and Pretzelmaker provides guidelines and counseling, including on-site evaluations, to help you find the perfect spot.

Pretzelmaker believes in equipping its franchisees with the knowledge and skills they need. This covers the system, brand standards, policies, and procedures. It's essential for both the franchisee and the person responsible for daily operations.

Pretzelmaker periodically offers advanced training programs, ensuring franchisees and their teams are always up-to-date. To ensure a smooth start, Pretzelmaker provides on-site assistance for at least two days when you're ready to launch.

Franchisees will not receive exclusive rights to the Development Area. While they can operate within a specified Development Area, there are no guarantees of exclusivity.

If the Development Area is defined as exclusive in Exhibit A, then as long as the franchisee operates the Stores according to the provided schedule and maintains the minimum number of Stores as required, the franchisor will not operate or license any other person to operate a Store under the Marks and the System within the Development Area.

However, it's essential to understand that outside of these conditions, the franchisor and its affiliates can conduct any business, and the franchisee's rights within the Development Area are not absolute.

Franchisees are expected to give their full-time and best efforts to the effective operation of the store. Moreover, each store must have at least one Manager.

If the franchisee is an individual, they can either act as the Manager or appoint someone else for this role. If the franchisee is an entity, they must designate a Manager and also appoint an individual owner as the "Operating Principal."

This Operating Principal should have the authority over all business decisions related to the store and must have the ability to bind the franchisee in all dealings with Pretzelmaker.

The Operating Principal can also act as the Manager, unless Pretzelmaker believes they lack the necessary experience. It's crucial that the store, at all times when open for business, is under the personal, on-premises supervision of the franchisee, the Operating Principal, or a Manager.