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 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 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 2021.
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:
- 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.
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.
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.
