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Schlotzsky’s franchise financing options

Compare costs, fees and where to get financing for a Schlotzsky's.

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.

Estimated initial costs

Our cost estimates are accurate as of 2022 from Franchise Direct and include opening fees and expenses only. The location you choose for your Schlotzsky's franchise 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.
Franchise Cost
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 Cost
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.
Real estate Cost
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.
Training Cost
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.
Inventory Cost
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.
Marketing Cost
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.
Licenses and permits Cost
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 Cost
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.
Admin Cost
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.
Other Cost
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 2022.

How to finance

Since the estimated total for Schlotzsky's is on the more costly side, we recommend following these steps to get fully financed:
  1. Go to the Schlotzsky's franchising website and review its financial requirements, including cash-on-hand requirements.
  2. Reach out to Schlotzsky's about in-house financing for franchisees.
  3. If in-house financing isn't available, look for online loans, bank loans and SBA loans to help meet the $751,550 estimated opening costs.
  4. Compare lenders based on amounts, interest rates and what types of personal and business credit history they accept.
  5. Once you settle on a lender, gather all required documents, including account statements and assets.
  6. Apply for financing online or in person as required by the lender.

What types of financing is available?

You have several options when it comes to financing a Schlotzsky's — even if the cost is on the heavier side. What assets you have available will largely determine how much you need to borrow, and which option suits you best.
  • Online loan. A number of online business lenders offer amounts up to $1 million, with some extending up to $5 million.
  • Bank loan. Your personal credit will typically need to at least be good — 670 or higher — when it comes to getting a bank loan large enough to cover a significant portion of Schlotzsky's opening costs.
  • SBA loan. While your personal credit score doesn't need to be as good to qualify for an SBA loan, they usually cost more than standard term loans from banks or online lenders.
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

You may not need financing to cover the estimated $644,300. But if you need funds for other business ventures, select the loan amount, your time in business and revenue and your personal credit score to compare a selection of lenders.
Name Product Filter Values Min. Amount Max. Amount Requirements
Biz2Credit business loans
up to $6 million
up to $6 million
6+ months in business; $100,000+ monthly revenue; 500+ credit score
Get only the capital you need through secure, prescreened lenders with this highly rated company offering SBA, expansion, working capital and other loans.
OnDeck short-term loans
600+ personal credit score, 1 year in business, $100,000+ annual revenue, active business checking account
A leading online business lender offering flexible financing at competitive fixed rates.
Fora Financial business loans
6+ months in business, $12,000+ monthly revenue, no open bankruptcies
Get qualified for funding in minutes for up to $500,000 without affecting your credit score. Best for companies with at least six figures in annual revenue.
Lendio business loans
Operate business in US or Canada, have a business bank account, 560+ personal credit score
Submit one simple application to potentially get offers from a network of over 300 legit business lenders.
ROK Financial business loans
Eligibility criteria 3+ months in business, $15,000+ in monthly gross sales or $180,000+ in annual sales
A connection service for all types of businesses — even startups.

Compare up to 4 providers

How Schlotzsky's stacks up

Compare how Schlotzsky's holds up against two similarly sized franchises.
CertaPro Painters Schlotzsky's BrightStar Care
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.

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