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Schlotzsky’s franchise financing options
Compare costs, fees and where to get financing for a Schlotzsky's.
Estimated initial costs
Our cost estimates are accurate as of 2021 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 feesSchlotzsky'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 feesEquipment 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 feesReal 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 feesSchlotzsky'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 costsInitial 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 costsAdvertisement 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 costsSchlotzsky'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 costsInitial 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 feesSchlotzsky'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 expensesMiscellaneous 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|
How to financeSince the estimated total for Schlotzsky's is on the more costly side, we recommend following these steps to get fully financed:
- Go to the Schlotzsky's franchising website and review its financial requirements, including cash-on-hand requirements.
- Reach out to Schlotzsky's about in-house financing for franchisees.
- 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.
- Compare lenders based on amounts, interest rates and what types of personal and business credit history they accept.
- Once you settle on a lender, gather all required documents, including account statements and assets.
- 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.
Compare small business lendersYou 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.
We update our data regularly, but information can change between updates. Confirm details with the provider you're interested in before making a decision.
How Schlotzsky's stacks upCompare 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 lineSchlotzsky'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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