Philly Pretzel Factory Franchise FDD, Costs & Fees (2024)
KEY FRANCHISE STATS
All you need to know about this franchise in a snapshot
Initial franchise fee
$35,000
Investment required
$135,000 - $407,000
Philly Pretzel Factory: Crafting Fresh Soft Pretzels Since 1998
Founded in 1998 by Dan DiZio and Len Lehman, Philly Pretzel Factory began its journey in the Mayfair neighborhood of Philadelphia, Pennsylvania. The company has since expanded its presence, with its headquarters now located in Bensalem, Pennsylvania.
Philly Pretzel Factory specializes in hand-twisted, freshly baked soft pretzels made from high-quality ingredients. Their product lineup includes traditional soft pretzels, pretzel dogs, and rivets, complemented by a variety of dips and mustards.
The company began franchising to share its successful business model with aspiring entrepreneurs. As of now, Philly Pretzel Factory boasts over 170 locations across multiple states, offering franchisees comprehensive support, including real estate assistance, construction guidance, and extensive training programs.
Philly Pretzel Factory differentiates itself through its commitment to quality and freshness, ensuring that all pretzels are made from scratch daily at each location. This dedication to authenticity and customer satisfaction has established the brand as a leader in the soft pretzel market.
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.
Philly Pretzel Factory offers 4 types of franchises:
| Type of Philly Pretzel Factory |
Initial Investment Range |
| Single Traditional Full-Production Philly Pretzel Factory |
$223,892 to $406,715 |
| Single Traditional Oven-Ready Philly Pretzel Factory |
$171,159 to $265,541 |
| Single Full-Production Philly Pretzel Factory Located in a Non-Traditional Location |
$219,847 to $382,211 |
| Single Oven-Ready Philly Pretzel Factory Located in a Non-Traditional Location |
$134,569 to $196,657 |
We are summarizing below the main costs associated with opening a traditional Philly Pretzel Factory.
For more information on the various types of franchises and its costs, refer to the Franchise Disclosure Document (Item 7).
| Type of Expenditure |
Amount |
| Initial Franchise Fee |
$35,000 |
| Rent |
$1,100 to $7,500 |
| Lease Deposit |
$1,100 to $15,000 |
| Architect Fees |
$5,000 to $11,000 |
| Construction/Leasehold Improvements |
$48,681 to $135,000 |
| Equipment |
$51,354 to $137,491 |
| Computer System, Office Supplies & Miscellaneous Equipment |
$1,624 to $2,224 |
| Promotional Materials |
$500 to $1,500 |
| Grand Opening Advertising Requirement |
$5,000 |
| Permits and Licenses |
$400 to $4,000 |
| Training Expenses |
$100 to $1,000 |
| Signage |
$3,200 to $10,000 |
| In-Store Camera Surveillance System |
$500 to $1,000 |
| Prepaid Insurance Premium |
$3,000 to $5,000 |
| Utility and Telephone Deposits |
$500 to $2,000 |
| Legal Costs |
$500 to $1,500 |
| Initial Inventory |
$3,500 to $7,500 |
| Additional Funds |
$10,000 to $25,000 |
| Total |
$171,159 to $406,715 |
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Franchise Disclosure Document
Training
Philly Pretzel Factory provides several training programs to support franchisees in running their operations effectively:
- Initial Training Program: Franchisees must attend and complete a mandatory initial training program that includes five continuous days at the franchisor's training center in Bensalem, Pennsylvania, or another designated location. Additionally, three to five days of on-site training are provided at the franchisee's Factory. The program covers classroom and on-the-job training and includes instructional materials provided at no extra charge.
- Supplementary Training: From time to time, the franchisor offers optional additional training programs and refresher courses for franchisees, managers, and employees. Attendance is not mandatory, and franchisees are responsible for associated expenses, such as travel, lodging, meals, and salaries.
- Employee Training: Franchisees are required to train their employees following the practices outlined in the Operations Manual. The manual includes detailed guidelines on operations, customer service, and compliance with franchise standards.
- Annual Conference: The franchisor may hold a mandatory two- or three-day Annual Conference to update franchisees on new developments and foster information exchange. Attendance is required unless prior written consent for absence is obtained, and franchisees must cover their own costs for the event.
- Ongoing Assistance: After the Factory opens, the franchisor provides periodic assistance and continuing consultation on operational and promotional matters, such as merchandising, pricing, sales techniques, and personnel development. Additional support may also be available through on-site visits or telephonic consultations.
Territory Protection
Philly Pretzel Factory provides limited territorial protection to its franchisees, but it is not exclusive. Franchisees operate within a defined territory, determined based on factors such as population, pedestrian traffic, and geographic boundaries. The franchisor agrees not to establish or license another Factory within the assigned territory, provided the franchisee fulfills their contractual obligations.
However, franchisees are not protected from competition originating from other franchisees, franchisor-owned outlets, or other distribution channels managed by the franchisor.
The size of the territory varies depending on the Factory's location, such as suburban or urban settings. For example, suburban territories often encompass a radius of two to three miles, while urban areas are typically restricted to two city blocks or less. Non-traditional locations, like kiosks, are confined solely to the immediate Factory location.
