Fazoli’s Franchise FDD, Costs & Fees (2024)

KEY FRANCHISE STATS

All you need to know about this franchise in a snapshot

Initial franchise fee
$40,000
Investment required
$378,000 - $2,329,000
Royalty fee
5.00%

Fazoli's: Redefining Italian-American Dining with Flavor and Innovation

Fazoli's is a notable American fast casual restaurant chain specializing in Italian-American cuisine. Established in 1988, its headquarters are located in Lexington, Kentucky. Owned by FAT Brands, Fazoli's began franchising in 1991, enabling entrepreneurs to join the fast-casual Italian dining scene.

The chain is known for its menu that blends traditional Italian dishes with Italian-American favorites, appealing to a broad audience. Fazoli's menu features baked pastas, signature Submarinos sandwiches, and a variety of other items such as Twice Baked Lasagna, Chicken Parmigiano, and Seasonal Salads. 

Their diverse offerings are complemented by catering services that include options for group meals, fresh-made pastas, oven-baked pastas, and more, available for pick-up or delivery at select locations.

Fazoli's also stands out for its innovative approach to customer engagement and satisfaction. In 2017, the brand introduced its first app-based loyalty program, which includes mobile ordering capabilities. This initiative enhances the dining experience by combining technology with convenience and rewards.

Beyond serving quality Italian food, Fazoli's is dedicated to creating a positive work environment and promoting career growth. The brand values leadership and teamwork, ensuring that "people come first" from management to each team member.

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.

Fazoli’s offers 4 types of franchises:

Type of Fazoli’s Restaurant Initial Investment
Freestanding Fazoli’s Restaurant $1,435,500 to $2,328,500
In-line End-cap Fazoli’s Restaurant $783,500 to $1,553,500
Fazoli’s Restaurant in a Nontraditional Location $623,000 to $991,000
Fazoli’s Delivery-Only Location $377,500 to $755,000

We are summarizing below the main costs associated with opening a Freestanding Fazoli’s Restaurant franchise.

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

Freestanding Fazoli’s Restaurant

Type of Expenditure Amount
Franchise Fee $30,000 to $50,000
Site Preparation $250,000 to $485,000
Architectural Services $25,000 to $75,000
Cost of the Building $825,000 to $980,000
Furniture, Fixtures, and Equipment $150,000 to $450,000
Information System and related technology $38,000 to $59,000
Training Expenses $10,000 to $35,000
Inventory & Uniforms $15,000 to $30,000
Security Deposits, Utilities and Insurance $5,000 to $27,000
Trade Area Analysis, Sales Projection and Sales Impact Report $15,000
Pre-opening and Opening Advertising $7,500
Additional Funds - 3 Months $60,000 to $120,000
TOTAL $1,435,500 to $2,328,500

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Number of units

2022
Franchised units

163

156

155

Company-owned units

52

56

57

Total units

215

212

212

Franchise Disclosure Document

Training 

Fazoli's, a leader in the food and beverage industry, distinguishes itself with a comprehensive training and support framework tailored for franchisees. Here's an in-depth overview of Fazoli's commitment to franchisee training and support:

Pre-opening Guidance:

  • Fazoli's offers detailed site selection guidelines and criteria to assist franchisees in choosing optimal locations.
  • Franchisees receive comprehensive standard building plans encompassing layouts, fixtures, furnishings, and interior designs, ensuring alignment with the Fazoli's brand.

Training Programs:

  • Mandatory on-the-job and instructional training is provided for all franchisee employees, with ongoing updates accessible through the Online Information Center.
  • Franchisees are equipped with specialized training materials, equipment, and supplies to facilitate effective training sessions.

Continual Development:

  • Fazoli's emphasizes continuous learning with ongoing management training, refresher courses, and retraining programs. This ensures that franchisee teams maintain proficiency in the latest operational standards.

Fazoli's commitment to robust training and support underscores its dedication to franchisee success and operational excellence.

Territory Protection

Under the Franchise Agreement, Fazoli's franchisees do not receive exclusive territory rights. This means they may encounter competition from other franchisees, company-owned outlets, affiliates, or other distribution channels and competitive brands controlled by the company or its affiliates.

Each franchisee is authorized to operate a Fazoli's Restaurant solely at the specific location stipulated in the Franchise Agreement. Relocation of the restaurant site necessitates prior approval from the company.

Approval for relocation may be considered provided the franchisee complies with the terms of the Franchise Agreement, adheres to other agreements with the company, and settles any outstanding payments owed to the company.

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