Wetzel's Pretzels Franchise Costs, Fees & Owner Salary (2023)

INVESTMENT

$25,000

-

$659,000

LOCATIONS

353

Emily

Updated

April 11, 2024

Is

Wetzel's Pretzels

a franchise?

Yes,
Wetzel's Pretzels
currently
accepts
franchise
applications

Wetzel's Pretzels, founded in 1994 and opened for franchising in the same year, offers a franchise business model that satisfies the craving for on-the-go snacks with flexible location formats and simple operations.The franchise is headquartered in Pasadena, California, and is known for its hand-rolled pretzels, lemonade, and simple yet flexible franchise model suitable for various locations.

Wetzel's Pretzels presents an appealing franchise opportunity for entrepreneurs interested in the fast-casual snack food market. The brand is recognized for its strong leadership and support system, providing franchisees with easy access to senior leadership for individualized support. Wetzel's Pretzels has garnered attention for its brand recognition and marketing, which greatly aids in standing out in the competitive market​​.

Wetzel's Pretzels prides itself on being fun and simple to own, requiring a smaller employee headcount, and offering convenient hours for operations. The brand stands out with its market availability, iconic presence in high-profile venues, and an experienced leadership team accessible for franchisee support.

Wetzel's Pretzels targets a wide range of locations for expansion, including malls, outlet centers, and high-traffic areas, and is open to exploring new growth markets and available territories across various states​​.

How many

Wetzel's Pretzels

franchises

are there?

In 2022, there were
353
outlets in
the United
States, of which
316
are franchises, and
37
are corporate-owned.

What are the

Wetzel's Pretzels

franchise

fees?

Advertising fee

6.00%

Initial Franchise Fee

The initial franchise fee for a Wetzel's Pretzels Bakery is $40,000. For a second Bakery in the same mall, the fee is reduced to $25,000 with a $20,000 development fee credited against it. For Concession Trucks or Trailers, the initial franchise fee is $7,500, with no discounts for subsequent units.

Lease Review Fee

Franchisees pay a Lease Review Fee ranging between $3,500 and $7,000 upon agreement signing. This fee varies with lease complexity and covers the franchisor's review costs.

Royalties

A weekly royalty of 7% of Adjusted Gross Revenue is due, supporting the continuous services provided by the franchisor.

Advertising Fund Contributions

Franchisees contribute 1% of Adjusted Gross Revenue to the Advertising Fund, supporting collective marketing efforts.

Relocation Fee

A Relocation Fee of $7,500 is charged for franchise relocation, covering the franchisor's site review and approval expenses.

Renewal Fee

The Renewal Fee is 50% of the then-current initial franchise fee, facilitating franchise agreement continuation under updated terms.

Transfer Fee

A Transfer Fee is applied during franchise transfer, with the fee amount dependent on the franchise type and timing. For a traditional Bakery, the fee is $40,000 if the transfer occurs within the first 12 months and $20,000 thereafter. For a non-traditional location, the fee is $20,000 during the first 12 months.

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

Wetzel's Pretzels

franchise?

It costs between
$25,000
and
$659,000
to start a
Wetzel's Pretzels
franchise.
Type of Expenditure Amount
Initial Franchise Fee $20,000 to $40,000
Lease Review Fee $3,500 to $7,000
Business Premises $5,000 to $25,000
Leasehold Improvements $50,000 to $400,000
Food Preparation Equipment $42,000 to $82,000
Utility Deposits, Licenses, Permits $500 to $5,000
Insurance $500 to $2,500
Signs & Menu Boards $4,000 to $12,000
Digital Display Boards $5,000 to $8,500
POS System $3,400 to $6,800
Initial Inventory & Smallwares $5,500 to $10,000
Training Fee for Additional Trainee $0 to $750
Training Expenses $1,000 to $2,500
Grand Opening Advertising $500 to $2,500
Office Equipment & Supplies $500 to $2,500
Professional Fees $1,000 to $3,100
Architect, Engineers & Const. Manager $5,500 to $20,000
Additional Funds - first 90 days $20,000 to $53,500
Total $167,900 to $683,650

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

Wetzel's Pretzels

provide

training

to its

franchisees?

Yes,
Wetzel's Pretzels
provides
training

Initial Training Program

Wetzel's Pretzels offers a comprehensive initial training program designed to ensure that franchise owners and their designated managers are well-prepared to operate their Franchised Business. The program is supervised by experienced personnel and includes both classroom instruction and hands-on training, covering various operational aspects of running a Wetzel's Pretzels outlet.

Designated Manager Training

The franchise requires that the Designated Manager, who can be the franchise owner or an appointed general manager, attend and successfully complete the initial training program. This is a prerequisite for opening a Franchised Business. Up to three members of the management team can attend the training at no additional charge, ensuring that key personnel are equipped with the necessary knowledge and skills.

Continuing Education

Wetzel's Pretzels is committed to the ongoing education of its franchisees, offering continuing education programs at its Bi-Annual Convention. Attendance at these conventions is mandatory and considered essential for staying updated with the latest operational practices and system-wide initiatives.

Additional Personnel Training

If more than three individuals from a franchise are sent to training, an additional fee is applied for each extra attendee. This policy ensures that all staff members who play a crucial role in the franchise's operation receive proper training, while also allowing for flexibility in staffing and management development.

Post-Opening Support

Following the opening of the Franchised Business, Wetzel's Pretzels provides ongoing support and consultation to franchisees. This includes access to personnel for advice and assistance, reinforcing the initial training with practical, day-to-day operational guidance.

Does

Wetzel's Pretzels

provides

territory

protection?

Wetzel's Pretzels provides franchisees with a "Protected Area," typically defined based on the location's urban, suburban, light suburban, or rural/second city characteristics. The size of the Protected Area varies, ranging from one mile in urban areas to up to five miles in rural or second city locations, depending on the population density within a three-mile radius.

This Protected Area is designed to prevent the franchisor from authorizing any other company-owned or franchisee-operated TWISTED BY WETZEL'S™ Bakery within its bounds. However, the Protected Area does not grant exclusivity regarding customers, meaning franchisees do not have exclusive rights to customers located within or outside their Protected Area.

Furthermore, while franchisees are granted a Protected Area, the franchisor retains the right to make adjustments to the franchisee's provision of delivery services, including changes to the delivery area size based on market conditions and other factors.

Can a

Wetzel's Pretzels

franchise

be run as

a passive

investment?

Wetzel's Pretzels requires franchisees to either personally supervise their Franchised Business or employ a Designated Manager to oversee day-to-day operations. The Designated Manager, who does not need to have an equity interest in the Franchised Business, must successfully complete the franchisor's initial training program and be certified by Wetzel's Pretzels as a manager before starting their role.

This requirement ensures that the franchise is managed by someone with a deep understanding of Wetzel's Pretzels' operations and standards.

Franchisees or their Designated Managers must devote a minimum of 40 hours per week to managing and operating the Franchised Business on-premises. This level of involvement is crucial for maintaining the quality and service standards that Wetzel's Pretzels expects from its franchisees. Additionally, a Designated Manager or another employee who has completed the initial training program must be present at the Franchised Business whenever it is open.

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