Charleys Philly Steaks

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Charleys Philly Steaks

Charleys Philly Steaks Franchise FDD, Costs & Fees (2025)

Charleys Philly Steaks offers made-to-order Philly cheesesteaks, gourmet fries, and lemonades.

Charleys Philly Steaks, originally named Charley's Steakery, was established by Charley Shin in 1986 after he discovered the deliciousness of a Philly Cheesesteak during a family trip. Inspired by this experience, Charley, a student at Ohio State University, decided to open the first restaurant near the university's campus in Columbus, Ohio, using his mother's life savings for support.

The company's headquarters remain in Columbus, Ohio, underscoring its deep ties to its founding city. Charleys Philly Steaks began franchising in 1991, five years after the first restaurant opened near The Ohio State University campus.

Renowned for its commitment to serving the "#1 Cheesesteak in the World®," the brand has grown significantly, expanding its presence globally. Over the years, Charleys Philly Steaks has not only increased its number of locations but also diversified its menu and business model.

Initial investment

Here's what you would need to invest if you were to start this franchise. These costs are provided by the franchisor in the Franchise Disclosure Document.

Charleys Philly Steak offers 3 types of franchises:

Restaurant Type Initial Investment Range
CPS Restaurant $203,736 to $694,249
CPSW Restaurant $220,432 to $984,732
CPSW Restaurant (within a Walmart Location) $236,463 to $569,250

We are summarizing below the main costs associated with opening a CPSW Restaurant franchise.

For more information on the various types of franchises and its costs, refer to the Franchise Disclosure Document (Item 7).

A CPSW RESTAURANT

Type of Expenditure Amount
Initial Franchise Fee $24,500
Leasehold Improvements $50,000 – $485,000
Equipment/Furniture/Fixtures $60,000 – $195,000
In-Restaurant Music/Media System $375 – $1,200
POS and Kiosk System $16,308 – $28,032
Signage $9,249 – $65,000
Architect & Engineer $10,500 – $30,000
Travel and Living Expenses (Training) $4,000 – $8,000
Insurance $3,500 – $10,000
Deposits and Professional Fees $1,000 – $8,000
Real Estate Lease $10,000 – $80,000
Grand Opening Marketing Kit $7,000 – $10,000
Additional Funds (3-month period) $24,000 – $40,000
Total $220,432 – $984,732

Franchise Disclosure Document

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Competitors

Below are some of

Charleys Philly Steaks

key competitors in the

Sandwich

sector.

Started franchising
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Franchise fee

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Royalty fee

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Revenue (AUV)

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Gross Profit

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EBITDA

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Home-based

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Passive investment

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FDD
Charleys Philly Steaks
1991
744
+
22%
22%
$24,500
6.00%

$204,000

-

$985,000

n.a.

$813,000

Upgrade

n.a.

n.a.

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n.a.

n.a.

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No
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No
No
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No
1970
97
+
-15%
-15%
$18,000
6.00%

$90,000

-

$589,000

Upgrade

n.a.

$0

n.a.

n.a.

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n.a.

n.a.

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No
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No
Yes
Upgrade
Yes
2009
95
+
111%
111%
$40,000
6.00%

$654,000

-

$1,274,000

Upgrade

n.a.

$1,299,000

n.a.

n.a.

Upgrade

n.a.

n.a.

Upgrade
Upgrade
Upgrade
78
+
2500%
2500%
$49,500
5.00%

$286,000

-

$569,000

Upgrade

n.a.

$719,000

n.a.

n.a.

Upgrade

n.a.

n.a.

Upgrade
Upgrade
Upgrade
2017
33
+
267%
267%
$35,000
5.00%

$330,000

-

$809,000

Upgrade

n.a.

$0

n.a.

n.a.

Upgrade

n.a.

n.a.

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No
Upgrade
No
Yes
Upgrade
Yes
2003
1
+
0%
0%
$25,000
5.00%

$321,000

-

$607,000

Upgrade

n.a.

$1,183,000

71.0%

n.a.

Upgrade

n.a.

n.a.

Upgrade
No
Upgrade
No
No
Upgrade
No
1997
25
+
-22%
-22%
$22,500
5.00%

$107,000

-

$227,000

Upgrade

n.a.

$0

n.a.

n.a.

Upgrade

n.a.

n.a.

Upgrade
Upgrade
Upgrade

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$49 / month
Total investment

?

Revenue (AUV)

?

Revenue growth (last 3 years)

?

Profit margin

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Franchise Disclosure Documents
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Training 

Charleys Philly Steaks offers a comprehensive training program to ensure franchisees are thoroughly prepared to maintain the brand's high standards and deliver exceptional service. Here is an overview of their training process:

Initial Training

Before opening their restaurant, franchisees must complete an initial training program. This program provides an in-depth understanding of the Charleys Philly Steaks system, including business methods, designs, equipment, ingredients, recipes, preparation techniques, and other operational standards.

The training consists of both classroom sessions and practical on-the-job training.

Classroom Training:

  • Topics include "Positions Certification" and the sessions last approximately 2-3 weeks.
  • Training is conducted in Ohio or other designated locations.

On-the-Job Training:

  • Covers areas such as Shift Management, Quality Assurance, Guest Service Standards, Cleanliness & Sanitation, Team Training, Security, Shift Control Skills, Cost Containment, and Preventive Maintenance.
  • This segment also lasts around 2-3 weeks.

Territory Protection

Franchisees are given the right to own and operate a Charleys Restaurant at a specific location. If the location is not agreed upon at the time of signing the Franchise Agreement, franchisees must choose a location within a designated area.

However, franchisees will not have exclusive or protected rights within this designated area. This means that while franchisees can operate in a designated area, they do not have exclusive territorial rights beyond their specific location.

This lack of territorial exclusivity allows Charleys Philly Steaks to grant additional franchises within the same area, potentially leading to multiple franchise locations in close proximity. While this approach can enhance brand presence and market penetration, it requires franchisees to focus on exceptional service and quality to maintain a competitive edge.

Number of units

2025
Franchised units

611

700

744

Company-owned units

61

61

69

Total units

672

761

813

Competitors

Blimpie

Franchisees

?

97
+
-15%
-15%
Investment

?

$90,000 - $589,000

Potbelly Sandwich

Franchisees

?

95
+
111%
111%
Investment

?

$654,000 - $1,274,000

Sourdough & Co

Franchisees

?

78
+
2500%
2500%
Investment

?

$286,000 - $569,000

I Heart Mac and Cheese

Franchisees

?

33
+
267%
267%
Investment

?

$330,000 - $809,000

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