SCHLOTZSKY'S
Schlotzsky’s franchises quick casual restaurants known as Schlotzsky’s® eateries that feature premium sandwiches, pizzas, calzones, soups, salads, and complementary food and beverages. Franchisees are typically required to also operate a Cinnabon® Express inside the restaurant as a condition of the franchise grant. The business model centers on franchising these restaurants, supplying goods and services to franchisees, and selling products to wholesale and retail customers, targeting consumers seeking fast-casual dining options.
Disclaimer: This information was extracted using AI from public Franchise Disclosure Documents and should be independently verified. This is not financial or legal advice. Always review official FDD filings before making investment decisions.
Overview
Financial Requirements
6% royalty + 4% ad fund + $230/mo Mar-Tech + $530-$1,534/mo POS license/lease + $125-$250/mo POS support + $62/mo loyalty app + $99/mo online ordering
Franchise Stats
Financial Performance
Item 19 Financial Performance
Data Based On: 204 Traditional Franchises with a drive-thru and 34 Traditional Franchises without a drive-thru, totaling 238 franchises, represented in these tables for Fiscal Year 2024.
* Weighted average gross revenue calculated from: (204 drive-thru units × $1,126,331 avg + 34 non-drive-thru units × $1,030,561 avg) / 238 total units = $1,112,650. Weighted median gross revenue calculated from: (204 drive-thru units × $1,054,269 median + 34 non-drive-thru units × $906,142 median) / 238 total units = $1,033,108. Weighted average for top quartile revenue calculated from: (204 drive-thru units × $1,697,377 top avg + 34 non-drive-thru units × $1,683,358 top avg) / 238 total units = $1,695,374. Weighted average for bottom quartile revenue calculated from: (204 drive-thru units × $673,976 bottom avg + 34 non-drive-thru units × $537,184 bottom avg) / 238 total units = $654,434.
Extracted Item 19 Section
How SCHLOTZSKY'S Compares to Other Fast Casual Franchises
| Franchise | Investment Range | Franchise Fee | Royalty | Locations |
|---|---|---|---|---|
SCHLOTZSKY'S Current | N/A | $36K | 6.0% | 280 |
| Tropical Smoothie Cafe | $300K - $721K | $35K | 6.0% | 1,371 |
| TROPICAL SMOOTHIE CAFÉ | $300K - $721K | $35K | 6.0% | 1,371 |
| FIREHOUSE SUBS RESTAURANTS (UNIT) | $379K - $1.4M | $20K | 6.0% | 1,248 |
| Zaxby's | $1.4M - $3.8M | $35K | 6.0% | 826 |
| Qdoba | $548K - $1.3M | $40K | 5.0% | 652 |
Fast Casual Average 107 franchises | $532K - $1.2M | $39K | 5.6% | - |
* Comparison based on latest FDD filings. Investment ranges from Item 7, fees from Item 5. Showing top 5 of 107 Fast Casual franchises by location count.
SBA Loan History
Historical SBA 7(a) loan data for SCHLOTZSKY'S franchisees (2010 - 2025)
Loans by Year
* Data sourced from SBA 7(a) FOIA loan records. Default rate calculated from charged-off loans.
Franchisee Contacts
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Due Diligence
Litigation (Item 3)
Former franchisee dispute alleging tortious interference with sale of stores, breach of contract, and deceptive trade practices.
Bankruptcy (Item 4)
No bankruptcy history reported in the FDD.
System Health (Item 20)
Franchise system changes reported in the most recent fiscal year
Frequently Asked Questions
How much revenue does a SCHLOTZSKY'S franchise make?
According to the 2025 FDD, the average gross revenue for a SCHLOTZSKY'S franchise is $1,112,650. The median revenue is $1,033,108.
How many SCHLOTZSKY'S franchise locations are there?
As of the 2025 FDD, SCHLOTZSKY'S has 280 franchise locations. The company has been franchising since 2017.
Can you get an SBA loan for a SCHLOTZSKY'S franchise?
Yes, SBA loans are available for SCHLOTZSKY'S franchises. Historical data shows 73 SBA 7(a) loans have been approved for SCHLOTZSKY'S franchisees, with an average loan amount of $798,629. The historical default rate is 4.1%.
Is SCHLOTZSKY'S a good franchise to buy?
SCHLOTZSKY'S shows several positive indicators: established brand with 280+ locations, transparent financial performance data (Item 19), low SBA loan default rate. However, franchise success depends on many factors including location, local market conditions, and owner involvement. We recommend speaking with existing franchisees and consulting with a franchise attorney before making a decision.
Interested in SCHLOTZSKY'S?
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