Overall costs for Pretzelmaker run anywhere from $216,200 to $343,000. See how the costs break down and what funding options might be right for your new venture into the franchise foray.
How COVID-19 affects franchising costs
Strict sanitation and employee protection measures during the coronavirus outbreak add to the typical costs you face when opening a new franchise. Paired with the unusually heavy amount of promotions that may be required by the franchise, you may not see as much in the way of profits starting out. For more information on what support is out there, read our guide to
loans for businesses affected by the coronavirus.
Estimated initial costs
Our cost estimates are accurate as of 2019 from
https://www.franchisedirect.com and include opening fees and expenses only. Your location may result in higher or lower fees.
Franchise fees
Pretzelmaker franchise fees total around $20,000, which beats out the $37,000 average for the 200 largest franchises nationwide.
| Franchise fee |
$15,000 to $25,000 |
| Estimated total |
$15,000 to $25,000 |
Equipment fees
Equipment fees total $88,250 for Pretzelmaker. This is less than the $180,023 average for the top 200 franchises.
| Furniture, fixtures, equipment and decor |
$65,000 to $90,000 |
| Signs |
$5,500 to $8,500 |
| Computer system |
$2,500 to $5,000 |
| Estimated total |
$73,000 to $103,500 |
Real estate fees
Real estate will set you back $142,100 for Pretzelmaker, thought it's less than the average of $788,376 for the top 200 franchises.
| Architectural fees |
$4,000 to $7,500 |
| Prepaid rent and security deposit |
$2,500 to $5,000 |
| Leasehold improvements |
$100,000 to $160,000 |
| Utility deposits |
$2,200 to $3,000 |
| Estimated total |
$108,700 to $175,500 |
Training fees
Pretzelmaker initial training costs total $3,000, which comes in under the nationwide average of $9,788.
| Travel and living expenses while training |
$2,000 to $4,000 |
| Estimated total |
$2,000 to $4,000 |
Inventory costs
Initial inventory for Pretzelmaker shakes out to $3,750. This is less than the nationwide average of $53,119.
| Dough ingredients |
$1,000 to $5,000 |
| Other opening inventory |
$500 to $1,000 |
| Estimated total |
$1,500 to $6,000 |
Marketing costs
Advertisement and marketing costs total up to $4,000 for Pretzelmaker, beating out the nationwide average of $9,938.
| Grand opening marketing |
$3,000 to $5,000 |
| Marketing fee |
1.5% of your Net Sales for the preceding week. |
| Estimated total |
$3,000 to $5,000 |
Licenses and permits costs
Pretzelmaker initial licenses and permits will set you back $2,000. This comes out to less than $18,770 — the overall nationwide average.
| First six months' business licenses, permits and similar costs |
$1,500 to $2,500 |
| Estimated total |
$1,500 to $2,500 |
Insurance costs
Initial insurance costs for Pretzelmaker run $3,000. This means you'll be paying less than the overall nationwide average of $6,311.
| Three months' insurance |
$2,500 to $3,500 |
| Insurance |
Cost of the premium (usually $2,500 to $5,000) plus a reasonable fee ($50 per hour) for the franchisoru2019s services in procuring the insurance. |
| Estimated total |
$2,500 to $3,500 |
Other expenses
Miscellaneous expenses for Pretzelmaker total $13,500 — less than the nationwide average of $69,970.
| Professional fees |
$1,000 to $6,000 |
| Three months' additional funds |
$8,000 to $12,000 |
| Estimated total |
$9,000 to $18,000 |
All costs were found using the 200 largest franchises nationwide using Franchise Direct's list of more than 300 franchises, and are accurate as of 2019.
How to finance
The best way to finance Pretzelmaker comes down to your personal financial situation. What assets you have available will largely determine how much you need to borrow, and which option suits you best. Potential solutions include:
- Bank loan. Your personal credit plays a large role in getting a business term loan from a bank. Typically this type of funding is for larger amounts.
- Online loan. Credit requirements may be more flexible for an online loan than a bank loan, but amounts may max out at a lower amount — typically around $1 million.
- SBA loan. The good part about SBA loans is that they top out at $5 million, but your business has to meet a number of requirements.
- Credit card. Small costs that aren't fixed, such as stray inventory and supply purchases, may be better off on a business credit card. Just make sure you can pay it off quickly to avoid high APRs.
Also check if Pretzelmaker franchise financing is available. You may be able to get some of the costs covered for less than you would with other traditional funding options.
Compare small business lenders
How Pretzelmaker stacks up
Compare how Pretzelmaker holds up against two similarly sized franchises.
| Average Franchise fees |
$25,000 |
$20,000 |
$49,900 |
| Average Equipment fees |
$10,531 |
$88,250 |
$52,250 |
| Average Real estate fees |
NA |
$142,100 |
$210,350 |
| Average Training fees |
$1,445 |
$3,000 |
$2,400 |
| Average Inventory fees |
NA |
$3,750 |
$3,400 |
| Average Marketing fees |
NA |
$4,000 |
$10,000 |
| Average Licenses and permits fees |
$600 |
$2,000 |
$1,750 |
| Average Insurance fees |
$800 |
$3,000 |
$1,750 |
| Average Admin fees |
NA |
NA |
NA |
| Average Personnel fees |
NA |
NA |
NA |
| Average Other fees |
$12,000 |
$13,500 |
$43,000 |
Bottom line
Pretzelmaker franchise costs run a total of $279,600. Before you decide to become a franchisee, compare the total costs against industry averages. And to learn more about financing
read our guide to franchise financing.
