Schlotzsky’s Bakery Café 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
$569,000 - $1,852,000
Royalty fee
6.00%

Schlotzsky’s Bakery Café: Revolutionizing Fast-Casual Dining with the Original Oven-Baked Sandwich

As part of the Focus Brands family, which includes well-known franchises such as Auntie Anne’s, Jamba, Moe’s Southwest Grill, Cinnabon, Carvel, and McAlister’s Deli, Schlotzsky’s Bakery Café is a significant player in the American fast-casual dining industry. Renowned for being the originator of the Original® oven-baked sandwich, Schlotzsky’s has built a strong reputation.

Schlotzsky’s Bakery Café was established in 1971 by Don and Dolores Dissman, opening its first location in the vibrant city of Austin, Texas.

The restaurant chain boasts an array of made-to-order menu items, including artisanal pizzas, expertly prepared sandwiches, refreshing salads, indulgent calzones, robust soups, and a variety of delightful food and drink options to suit a wide range of tastes.

Headquartered in Atlanta, Georgia, Schlotzsky’s Bakery Café started franchising in 1976 and has since grown to over 330 locations across the United States, continually expanding its reach and concept.

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.

Type of Expenditure Endcap/Inline Shopping Center Location Newly-Constructed Freestanding Location
Initial Franchise Fee $35,500 $35,500
Construction and Build Out Costs $193,050 - $526,500 $857,000 - $1,064,700
Permitting $1,800 - $11,000 $4,000 - $12,900
Equipment Package $87,750 - $170,820 $131,000 - $170,820
Millwork $40,500 - $53,820 $12,000 - $28,100
Furniture $17,550 - $35,100 $11,000 - $31,600
Menu Board, Graphics and Interior Signage $12,000 - $22,600 $5,000 - $22,230
Exterior Signage $20,400 - $46,800 $80,000 - $140,400
Computer System $26,000 - $60,000 $26,000 - $60,000
Smallwares $6,700 - $7,500 $11,000 - $14,500
TV/Music $2,000 - $3,000 $3,000 - $3,900
Architect/Engineer $5,000 - $50,000 $20,000 - $35,100
Rent $5,000 - $15,600 $5,000 - $15,600
Grand Opening Marketing $15,000 - $25,000 $15,000 - $25,000
Legal and Accounting Fees $3,000 - $12,000 $2,500 - $10,000
Insurance $1,750 - $8,800 $1,750 - $8,800
Misc. Opening Costs/Office Supplies $500 - $5,000 $500 - $1,500
Security Deposits $7,000 - $10,000 $500 - $8,000
Training Fees $0 - $5,200 $0 - $5,200
Travel and Living Expenses during Training $10,000 - $40,000 $10,000 - $40,000
Opening Inventory $7,500 - $25,000 $15,000 - $21,800
Cinnabon Express Bakery Initial Franchise Fee $8,000 - $8,000 $0 - $8,000
Cinnabon Express Bakery $23,600 - $40,100 $0 - $40,100
Additional Funds - 3 Months $39,000 - $48,000 $39,000 - $48,000
Total Initial Investment $568,600 - $1,265,340 $1,284,750 - $1,851,750

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Number of units

2023
Franchised units

316

303

298

Company-owned units

23

24

25

Total units

339

327

323

Franchise Disclosure Document

Training 

Before launching a Schlotzsky’s restaurant, franchisees participate in a comprehensive training program. This program encompasses all critical elements of restaurant management, including operational procedures, customer service excellence, and marketing tactics. The training aims to equip franchisees with the necessary skills and knowledge to run their businesses successfully.

Beyond the initial training, Schlotzsky’s emphasizes the value of ongoing education. They offer continuous support and training sessions to keep franchisees current with the latest operational methods and brand standards, ensuring long-term success and consistency across the franchise network.

Territory Protection

Schlotzsky’s Bakery Café does not offer franchisees an exclusive territory. However, franchisees are granted a territory with specific protected rights, referred to as an "Area of Protection." Franchisees are authorized to operate their restaurant solely at an approved location.

If the restaurant location is not approved when the Franchise Agreement is signed, the franchisee must choose a site that meets Schlotzsky’s site selection criteria within a designated site selection area. This area is determined individually for each franchisee. It is important to note that franchisees do not have exclusive or protected rights within this site selection area.

The Area of Protection is outlined in the Franchise Agreement. During the term of this agreement, Schlotzsky’s will not establish or authorize any other person to establish a restaurant that would infringe upon the franchisee's Area of Protection.

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