Schlotzsky's Franchise Startup Costs: What You Need to Know!

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In today’s business climate, franchise opportunities have never been greater. Today, aspiring business owners can choose from many opportunities in different industries. For example, restaurant franchises such as Schlotzsky have seen tremendous growth over the past few years. According to IBIS World, the quick service restaurant industry continues to experience a steady annual growth rate of 9.1%. Starting a franchise can be a great way to open your own business and capitalize on that growth.

However, one of the key questions that arises when considering a franchise is, “How much does it cost to open?” This is an important question to consider, as franchise start-up costs can vary greatly depending on the franchise itself. In this blog post, we’ll focus on Schlotzsky’s franchises and learn how much it costs to open one.


Start-up costs

It’s no secret that running a business is expensive, but exactly how much does it cost to open/start/launch a Schlotzsky franchise? Generally, start-up costs range from 9,650 to ,609,500, with an average of 0,000.

Below is a breakdown of typical start-up costs for a Schlotzsky franchise:

Cost Amount (USD)
Franchise fees: ,000
Building improvements / lease: ,000-5,000
Equipment and furniture: ,000-5,000
Report: ,000-,000
License / permit: ,500-,000
Assurance: ,000-,000
Operating Capital: ,000
Recruitment: ,000
Marketing: ,000-,000
Total: 9,650 – ,609,500

Franchise fees:

The franchise fee for a Schlotzsky franchise is currently ,500, according to the company’s 2020 Franchise Disclosure Document (FDD). This fee is for franchisees paying for the initial franchise period of at least five years. These fees are payable only once and are non-refundable. There is also an additional franchise fee of ,500 if the franchisee exercises their option to renew the franchise agreement.

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In addition to the franchise fee, franchisees must also pay an additional upfront fee of ,500. This includes start-up costs of ,000, development costs of ,500, and franchise branding costs of ,000. Franchisees are also required to pay a royalty of 6% of their gross sales, as well as a 2% advertising fee. These fees must be paid in addition to the franchise fees.

Schlotzsky also requires its franchisees to pay an initial inventory fee of ,000, as well as an ongoing monthly inventory fee of ,000. This is necessary to maintain the high quality of the products the chain is known for. Additionally, franchisees must also provide a minimum of 0,000 in liquid assets.

In total, it costs about 1,000 to open a Schlotzsky franchise. Although this may seem like a lot of money, prospective franchisees should consider that the costs associated with such a business are generally greater than opening a business independently, as franchising benefits from name recognition and systems. that can provide long-term success.

Building improvements / lease:

The cost of building improvements and leases can vary depending on the age, condition and size of the building, as well as local markets. The total cost of real estate improvements and lease for a Schlotzsky franchise is usually between ,000 and 0,000, with some deals exceeding 0,000.

These costs cover the purchase of necessary equipment and furnishings and any alterations or improvements to real estate to meet brand standards. These items may include items such as furniture, kitchen and counter equipment, audio/visual equipment, refrigeration, installation and construction costs, plumbing, electrical and any other utility costs. improvement. Costs may also include required renovations and upgrades to existing buildings.

In addition to real estate and lease improvement fees, start-up co-equity requirements include ,000 in liquid assets and a minimum of 0,000 net. Franchisees should be prepared to pay a franchise fee of ,000 plus all applicable taxes. The total initial investment cost to open a Schlotzsky franchise can range from 2,500 to 9,500.

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The cost of real estate and lease improvements for Schlotzsky franchises can be expensive, but the brand offers assistance to its franchisees in finding reasonable rates and locations. Potential franchisees should do their research to make sure they understand the true cost of opening a new franchise. They should work with the brand to ensure they can secure a location that meets franchise standards and provides a reasonable estimated cost of the total engagement.

Equipment and furniture:

When starting a Schlotzsky franchise, you should be aware of the costs associated with equipment and furniture. Having the necessary tools and furniture in your business is essential to ensure that your franchise is up and running successfully.

The estimated cost of equipment and furniture for a Schlotzsky franchise is there ,000 to ,000 . This amount includes essential items such as tables and chairs, ovens, refrigerators, freezers and dishwashers.

It is important to have adequate and high quality equipment and furniture in your business. This will ensure that your business runs efficiently and customers receive a pleasant experience.

Here is a list of items you will need to get for your business:

  • Tables and chairs
  • Ovens
  • Refrigerators
  • Freezers
  • Dishwasher
  • Utensils
  • Waste
  • cutting boards
  • kitchen supplies

Getting the right equipment and furniture for your business is important. This will ensure that your franchise is operating efficiently. Also, having the right tools and furniture is key to providing customers with an enjoyable experience.


When it comes to opening a Schlotzsky franchise, one of the most important considerations is signage. Signage helps attract customers and create brand awareness. The cost of signage for a Schlotzsky franchise can vary greatly depending on the size of the signage, materials used, and other factors.

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On average, most Schlotzsky franchisees spend between ,000 and ,000 on signage. This cost can increase significantly depending on the size and complexity of the signage. For example, a large illuminated sign can cost as much as ,000 . Additionally, some franchisees may choose to invest in additional signage, such as window or vehicle graphics, which may also increase costs.

When budgeting for signage, it is important to consider additional costs, such as installation and maintenance. Installation costs can range from 0 to ,000 , while maintenance costs can range from 0 to 0 per year. It’s also important to consider any permits or fees associated with signage, which can vary greatly depending on location.

Overall, the cost of signage for a Schlotzsky franchise can range from ,000 to ,000 , depending on the size, complexity, and additional costs associated with the signage. It is important to consider additional costs when budgeting for signage to ensure you have the funds to complete your project.

License / permit:

The cost of licensing/permitting a Schlotzsky franchise will depend on the jurisdiction in which the business is located. Generally, it is necessary to obtain a business license and any other applicable permits before opening a Schlotzsky franchise. The exact cost will vary depending on local regulations, but it ranges from 0 to ,500 . Additionally, some states may require the franchisee to obtain a food service license, which can cost anywhere from to ,000 .

In addition to licensing/permitting, the franchisee may also need to obtain a certificate of occupancy and other permits. These costs typically range between 0 and ,000 , depending on location and local regulations.

It is important to note that the franchisee must pay all license/permit fees prior to the opening of the Schlotzsky franchise. The exact cost of licensing/permitting will vary depending on the jurisdiction in which the business is located, and the franchisee should research these costs before opening a franchise.

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When you become a Schlotzsky franchisee, you will need to purchase the appropriate amount of business insurance to protect your business against financial loss. This includes general liability insurance, workers’ compensation insurance, property insurance, and commercial auto insurance. The exact amount of insurance coverage you need depends on your individual business operations and circumstances, so it’s important to consult an insurance professional to determine the right coverage.

The cost of commercial insurance can vary greatly depending on the type and amount of coverage you need. According to the latest statistics from the National Association of Insurance Commissioners (NAIC), the average cost of commercial insurance in the United States was ,200 in 2019. This figure includes all types of commercial insurance, including general liability, l workers’ compensation, property and commercial auto insurance.

Therefore, it is difficult to provide an exact estimate of how much insurance you will need to purchase for your Schlotzsky’s deductible. However, as a general rule, you should budget at least ,000 – ,500 for commercial insurance when you open your Schlotzsky franchise. This should provide sufficient coverage to protect your business against potential liabilities and losses.

Operating Capital:

When considering the cost of starting a Schlotzsky franchise, it’s important to consider the operating capital required. This is the money needed to cover expenses incurred before the business becomes profitable. According to Schlotzsky’s Franchise Disclosure Document (FDD), the estimated operating capital required to open a new Schlotzsky franchise is between ,000 and 0,000. This includes the following expenses:

  • Initial franchise fee of ,000
  • Rent and security deposit
  • Lease Improvements
  • Equipment and furniture
  • Panels
  • Public services
  • Inventory and supplies
  • Assurance
  • Miscellaneous opening costs
  • Working capital from ,000 to ,000
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In total, the estimated initial investment cost for a Schlotzsky franchise ranges from 1,800 to 0,000 in the United States. This includes the operating capital costs mentioned above as well as franchise fees, real estate fees and other associated costs. It is important to note that these figures are estimates and actual costs may vary.


When considering the start-up costs of a Schlotzsky franchise, personnel is an important factor to consider. The average Schlotzsky franchise is estimated to employ 15 to 20 staff members. This means that in addition to the cost of training, salaries and benefit costs must also be considered when budgeting. According to the Bureau of Labor Statistics, the average salary for restaurant staff in the United States is .68 per hour. Assuming an average of 20 staff members, with a 40 hour work week, the estimated cost for staff alone is approximately 2,000 per year.

In addition to staff salaries, additional costs must be taken into account. Benefits such as health insurance and 401K contributions can range from 10-30% of wages, depending on the benefits offered. This could add an additional ,200 to ,600 to the annual cost of staff.

Finally, staff training is an important cost to consider. Schlotzsky franchisees must invest in training their staff to ensure that the highest quality of service is provided. This cost can range from 0 to ,000 per employee , depending on the type of training required.


Marketing is essential for any business, and that includes a Schlotzsky franchise. To effectively launch your franchise, you will need to budget for marketing costs. According to the most recent statistics from USD, the average marketing cost for a Schlotzsky franchise can range from ,000 to ,000. This cost includes developing a website, creating a marketing plan, advertising, and launching a social media campaign.

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When budgeting for your marketing costs, you will need to consider the following:

  • Website: Developing a website is essential for any business, and Schlotzsky franchises are no different. Depending on the quality and complexity of the website you choose, it could cost anywhere from 0 to ,000.
  • Marketing Plan: Creating a marketing plan is essential for any business, and Schlotzsky’s franchises are no different. This cost can range from ,000 to ,000.
  • Advertising: Advertising is an important aspect of any business, and Schlotzsky franchises are no different. Your advertising costs could range from ,000 to ,000.
  • Social Media Campaign: Launching a social media campaign is an important way to reach potential customers. This cost can vary from 0 to ,000.

These costs can add up quickly, so it’s important to develop a budget that is realistic and that you can stick to. By planning ahead and budgeting for marketing costs, you can ensure your Schlotzsky’s franchise has a successful launch.


In conclusion, starting a Schlotzsky franchise can be a great business opportunity for entrepreneurs looking to open their own business. It is important to consider the various costs associated with opening a Schlotzsky franchise, such as franchise fees, property/tenant improvements, equipment and furniture, signage, licenses/permits, insurance, working capital, personnel and marketing. All of these costs combined can add up to a total of 4,900 to 7,000 .

If you are considering a franchise opportunity, it is important to do your research and understand the associated costs. With the right information and preparation, you can be on your way to owning a successful Schlotzsky franchise. Good luck!