Saladworks Franchise Costs, Fees & Owner Salary (2023)

Saladworks, the nation's original and leading entrée salad destination, was founded in 1986 and began its franchising journey in 2001. 

With a focus on fresh, made-to-order salads, this franchise offers a health-conscious alternative in the fast-casual dining sector. 

Headquartered in Conshohocken, Pennsylvania, Saladworks differentiates itself through its commitment to providing a variety of fresh, flavorful, and healthy dining options, catering to the growing consumer demand for healthier meal choices. 

Initial Franchise Fee

A one-time, non-refundable fee of $35,000 is due upon signing the franchise agreement.

Royalty Fee

Weekly payments of 6% of Net Sales.

Advertising Fee

A weekly contribution of 3% of Net Sales to the Brand Development Fund.

Technology Bundle Fee

Monthly fees range from $470 to $1,200 for various technological services such as POS Systems, Managed Internet Hardware, Online Ordering, Loyalty Programs, Music Systems, Profit and Loss software, and Intranet and Portal services.

Renewal Fee

A $17,500 fee for renewing the franchise agreement.

Transfer Fee

Costs vary depending on the transfer scenario, including a percentage of the current initial franchise fee and a possible $2,000 fee for ownership changes among existing partners.

Training

The franchisor provides a structured initial training program for franchisees and their management personnel. This training is crucial for ensuring that franchisees are fully prepared to operate their Saladworks restaurant in line with the brand's standards and procedures. Below are the key components of the training program provided by the franchisor:

Initial Training Program

Before the commencement of operations, the franchisor offers initial training to the franchisee and up to three of the franchisee's management personnel. This training is provided at no charge if the franchisee and their management personnel attend the program simultaneously. The training covers various aspects essential for running the restaurant, including financial controls, bookkeeping procedures, food preparation, service and operational techniques, marketing, and advertising techniques, as well as sanitation and maintenance procedures. The initial training aims to ensure the franchisee and their team are proficient in all areas critical to the successful operation of a Saladworks restaurant.

Refresher Training Programs

The franchisor may, from time to time, provide refresher training programs or seminars. These are designed to keep previously trained and experienced franchisees, managers, and management personnel up-to-date with the latest operational practices, menu updates, and other relevant changes. Attendance at these refresher programs is at the franchisee's expense, and the franchisor limits the requirement to no more than four such programs in any calendar year, not exceeding eight business days in total.

Training for Franchisee's Personnel

In addition to the initial and refresher training programs, the franchisor provides training materials for the franchisee to use in training their personnel. These materials are updated periodically and remain the property of the franchisor. The use of these materials ensures that the franchisee's staff are trained consistently with the franchisor's standards.

The franchisor offers a form of territory protection for Saladworks franchises, but with specific limitations and conditions.

While you won't receive an exclusive territory and may face competition from other franchisees, outlets owned by the franchisor, or other distribution channels or competitive brands controlled by the franchisor, the franchisor commits not to solicit orders or establish and operate, nor license any party other than you to establish and operate, any Saladworks restaurant under the System and the Proprietary Marks within your designated territory, provided you comply with the franchise agreement terms.

The territory's scope and size are determined at the franchisor's sole discretion, based on various factors such as location, traffic patterns, parking availability, and area demographics. This territory may be limited to the accepted location for your restaurant.

Saladworks franchise disclosure document does not fully allow for passive investment. The Saladworks franchise disclosure document states that the franchisee or at least one of the franchisee's principals (if the franchisee is a corporation, limited liability company, or partnership) must devote their best efforts to the management and operation of their restaurant. 

While franchisees may delegate the day-to-day supervision of the restaurant to a manager ("Manager"), this Manager must have completed the franchisor's initial training before assuming any managerial responsibilities. 

The restaurant must be managed at all times by either the franchisee or a trained Manager. If the franchisee operates more than one Saladworks restaurant, a properly trained Manager must be present at each location. The franchisee must keep the franchisor informed at all times about the identity of anyone acting as the Manager of the restaurant.