Overall costs for Schlotzsky's run anywhere from $644,300 to $858,800. 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
Schlotzsky's franchise fees total around $30,000, which beats out the $37,000 average for the 200 largest franchises nationwide.
| Initial franchise fee |
$30,000 to $30,000 |
| Royalty |
6% of net sales. |
| Estimated total |
$30,000 to $30,000 |
Equipment fees
Equipment fees total $269,350 for Schlotzsky's. This costs more than the $180,023 average for the top 200 franchises.
| Equipment package |
$150,500 to $176,500 |
| Millwork |
$34,600 to $46,000 |
| Furniture |
$18,600 to $27,000 |
| Menu board, graphics and interior signage |
$13,000 to $14,000 |
| Exterior signage |
$18,100 to $22,000 |
| Smallwares |
$6,700 to $7,500 |
| TV and music |
$2,000 to $2,200 |
| Estimated total |
$243,500 to $295,200 |
Real estate fees
Real estate will set you back $342,250 for Schlotzsky's, thought it's less than the average of $788,376 for the top 200 franchises.
| Construction and build-out costs |
$285,000 to $352,000 |
| Architect and engineer |
$12,000 to $15,000 |
| Rent |
$5,000 to $10,000 |
| Security deposits |
$500 to $5,000 |
| Estimated total |
$302,500 to $382,000 |
Training fees
Schlotzsky's initial training costs total $48,500 — more than the nationwide average of $9,788.
| Computer system and software training |
$15,000 to $32,000 |
| Travel and living expenses during training |
$10,000 to $40,000 |
| Estimated total |
$25,000 to $72,000 |
Inventory costs
Initial inventory for Schlotzsky's shakes out to $20,000. This is less than the nationwide average of $53,119.
| Opening inventory |
$15,000 to $25,000 |
| Estimated total |
$15,000 to $25,000 |
Marketing costs
Advertisement and marketing costs total up to $20,000 for Schlotzsky's, which is more than the nationwide average of $9,938.
| Grand opening marketing |
$15,000 to $25,000 |
| Estimated total |
$15,000 to $25,000 |
Licenses and permits costs
Schlotzsky's initial licenses and permits will set you back $1,950. This comes out to less than $18,770 — the overall nationwide average.
| Permits |
$1,800 to $2,100 |
| Estimated total |
$1,800 to $2,100 |
Insurance costs
Initial insurance costs for Schlotzsky's run $11,500. This means you'll be paying more than the overall nationwide average of $6,311.
| Insurance |
$8,000 to $15,000 |
| Estimated total |
$8,000 to $15,000 |
Administrative fees
Schlotzsky's administrative fees total up to $6,500 — which comes in under the overall nationwide average of $6,761.
| Legal and accounting fees |
$3,000 to $10,000 |
| Audit |
Cost of audit. |
| Estimated total |
$3,000 to $10,000 |
Other expenses
Miscellaneous expenses for Schlotzsky's total $1,500 — less than the nationwide average of $69,970.
| Miscellaneous opening costs and office supplies |
$500 to $2,500 |
| Estimated total |
$500 to $2,500 |
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 Schlotzsky's 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 Schlotzsky's 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 Schlotzsky's stacks up
Compare how Schlotzsky's holds up against two similarly sized franchises.
| Average Franchise fees |
$57,500 |
$30,000 |
$25,000 |
| Average Equipment fees |
$8,250 |
$269,350 |
$3,250 |
| Average Real estate fees |
NA |
$342,250 |
$300 |
| Average Training fees |
NA |
$48,500 |
$7,595 |
| Average Inventory fees |
NA |
$20,000 |
NA |
| Average Marketing fees |
NA |
$20,000 |
$500 |
| Average Licenses and permits fees |
NA |
$1,950 |
$4,402 |
| Average Insurance fees |
$7,250 |
$11,500 |
NA |
| Average Admin fees |
NA |
$6,500 |
$3,250 |
| Average Personnel fees |
NA |
NA |
$3,096 |
| Average Other fees |
$2,500 |
$1,500 |
$41,181 |
Bottom line
Schlotzsky's franchise costs run a total of $751,550. 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.
