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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.
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Franchise Costs
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
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
Avg. Revenue: $1,112,650
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Unlock financial performance dataSCHLOTZSKY'S Franchise Analysis
Schlotzsky’s fuses deli-style sandwiches, pizzas, and soups with a built-in Cinnabon® Express requirement, carving a fast-casual edge under GoTo Foods since 2017. Item 19 unveils revenue benchmarks that stand out in the sector, while FDD metrics on transfers and expansions signal system momentum alongside minor contract hiccups. Can this Atlanta powerhouse deliver the returns to justify the bundled bakery commitment?
Item 19 data shines with average gross revenues of $1,112,650 and a median of $1,033,108 across franchised units, positioning Schlotzsky’s competitively against sandwich rivals. The initial franchise fee is $35,500, but expect layered ongoing costs: 6% royalty, 4% brand/ad fund, plus $230/month Mar-Tech, $530-$1,534/month POS license/lease, $125-$250/month POS support, $62/month loyalty app, and $99/month online ordering. These fees support a model emphasizing supply chain control and wholesale sales, with 280 franchised locations backed by 28 corporate stores.
System vitality shows through 64 projected new units, 42 transfers, just 12 terminations, and 1 non-renewal, indicating stability post-2017 franchising relaunch. SBA financing looks robust with 73 loans averaging $798,629 and a scant 4.1% default rate, easing entry for qualified buyers. Yet a litigation note flags a former franchisee’s claims of tortious interference and breach in a store sale—probe FDD Items 3 and 20 deeply to gauge support risks versus growth potential in this Cinnabon-tied niche.
Analysis based on the 2025 Franchise Disclosure Document. All figures should be independently verified before making investment decisions.
How SCHLOTZSKY'S Compares
| Franchise | Investment | Fee | Royalty | Locations |
|---|---|---|---|---|
SCHLOTZSKY'S Current | N/A | $36K | 6.0% | 280 |
| Tropical Smoothie Cafe | $276K – $771K | $35K | 6.0% | 1,650 |
| TROPICAL SMOOTHIE CAFÉ | $300K – $721K | $35K | 6.0% | 1,371 |
| FIREHOUSE SUBS RESTAURANTS (UNIT) | $405K – $1.6M | $20K | 6.0% | 1,249 |
| Zaxby's | $1.4M – $3.8M | $35K | 6.0% | 826 |
| Qdoba | $548K – $1.3M | $40K | 5.0% | 652 |
Fast Casual Average 107 franchises | $529K – $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
SBA 7(a) loan activity over time
* Data sourced from SBA 7(a) FOIA loan records. Default rate calculated from charged-off loans.
73 SBA loans on record
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Unlock SBA loan historyFranchisee Contacts
280 franchisee contacts on file from official FDD filings.
280 Contacts Available
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Unlock contactsDue Diligence
Litigation (Item 3)
Former franchisee dispute alleging tortious interference with sale of stores, breach of contract, and deceptive trade practices.
Bankruptcy (Item 4)
System Health (Item 20)
Franchise system changes reported in the most recent fiscal year
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Unlock due diligence reportsFrequently Asked Questions
SCHLOTZSKY'S does disclose financial performance data (Item 19) in their 2025 FDD, including average and median gross revenue figures. Get full access to see the exact revenue numbers and detailed financial breakdown.
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