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

KEY FRANCHISE STATS

All you need to know about this franchise in a snapshot

Franchisees

?

613
+
24%
24%
Investment required

?

$200,000 - $907,000
Revenue (AUV)

?

$845,000
Undisclosed
Pro
+
n.a.
+
xx%
-xx%
n.a.
Initial franchise fee

?

$24,500
Royalty fees

?

6.00%
+
3% to 4%
Operating Profit

?

n.a.

Pro
Franchisees

?

613
+
24%
24%
Investment required

?

$200,000 - $907,000
Franchise fee

?

$24,500
Royalty fees

?

6.00%
+
3% to 4%
Revenue (AUV)

?

$845,000
Undisclosed
Pro
+
n.a.
+
xx%
-xx%
n.a.
Operating Profit

?

n.a.

Pro

Charleys Philly Steaks: A Pioneer in Cheesesteak Excellence

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.

Initially focused on mall food courts, the brand has expanded to various types of locations and embraced digital advancements, introducing online ordering and a loyalty program via a mobile app. This growth and innovation highlight Charleys Philly Steaks' ability to evolve while maintaining its dedication to quality cheesesteaks and other menu items.

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:

Type of restaurant Initial Investment
CPS Restaurant $199,967 to $642,634
CPSW Restaurant $216,507 to $907,012
CPSW Restaurant in a Walmart Location $218,758 to $533,561

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

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

A CPS RESTAURANT

Type of Expenditure Amount
Initial Franchise Fee $24,500 - $24,500
Leasehold Improvements $50,000 - $329,000
Equipment/Furniture/Fixtures $50,931 - $125,000
POS and Kiosk System $12,536 - $18,134
Signage $5,000 - $15,000
Architect $8,000 - $16,000
Travel and Living Expenses Associated With Initial Training $4,000 - $6,000
Insurance $3,500 - $10,000
Deposits and Professional Fees $1,000 - $7,000
Real Estate Lease $12,500 - $50,000
Grand Opening Marketing Package $7,000 - $10,000
Social Media Advertising $1,000 - $2,000
Additional Funds (3 month period) $20,000 - $30,000
Totals $199,967 - $642,634

Franchise Disclosure Document

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Competitors

Franchise
Franchisees
Growth
Initial fee
Investment
Revenue
Gross Profit
Operating Profit
Industry

613

+
24%
24%
No growth
New

$24,500

$200,000

-

$907,000

n.a.

$845,000

Pro

n.a.

Pro

n.a.

Pro

Food & Beverage

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

2023
Franchised units

496

538

613

Company-owned units

55

55

60

Total units

551

593

673

Competitors

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$351,000
-
$760,000
Franchisees
93
+
18%
18%

Penn Station East Coast Subs

Investment required
$474,000
-
$765,000
Franchisees
321
+
1%
1%

Ike's

Investment required
$141,000
-
$614,000
Franchisees
6
+
200%
200%

Goodcents Deli Fresh Subs

Investment required
$329,000
-
$465,000
Franchisees
65
+
0%
0%

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