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WETZEL'S PRETZELS
Wetzel’s Pretzels franchises bakeries, concession trucks/trailers, and remote mobile units specializing in hand-rolled, fresh-baked soft pretzels, along with hot dogs and beverages. The business operates in high-traffic locations like shopping malls, power centers, strip centers, and streetside spots, relying on foot and vehicular traffic generated by anchor retailers and other businesses. Target customers are shoppers, pedestrians, and quick-service snack seekers in busy retail environments.
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Franchise Costs
7% royalty (Non-Street-Front Bakery) + 1% ad fund + $29.50/wk (~$128/mo) to $300/mo technology fee; rates vary by bakery type (e.g., Street-Front: 5% royalty + 3% ad fund)
Financial Performance
Item 19 Financial Performance
This franchise did not provide Item 19 financial performance data.
Be careful if you are interested in investing. The lack of financial performance representations may indicate limited data or varying results across franchises.
Extracted Item 19 Section
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Unlock financial performance dataWETZEL'S PRETZELS Franchise Analysis
Twisting through high-traffic malls and streetside spots, Wetzel's Pretzels keeps churning out fresh-baked snacks amid fast food rivals. The latest FDD uncovers a system with tight operational control, few owner exits, and a loan history that stands out in the quick-service arena. What makes this 30-year brand resilient enough to fuel 9% growth—without revenue disclosures to back it up?
Item 7 lays out the initial investment from $188,500 for compact units like kiosks up to $725,450 for full bakeries, covering buildout, equipment, and inventory in prime retail zones. Franchise fee hits $40,000, with royalties at 7% plus 1% ad fund for non-street-front spots—or 5% royalty and 3% ad for street-front—tacked on with tech fees up to $300 monthly. No Item 19 means no official sales or profit figures, forcing buyers to dig into 423 locations (35 corporate) where 100 SBA loans averaged $366,917 with just 2% defaults, signaling solid cash flow potential despite litigation shadows from parent MTY's past suits over contracts and trademarks.
System metrics shine: from 389 to 423 units in a year (+9%), 63 projected openings, only 1 termination and 1 non-renewal, plus 13 transfers showing owner mobility without chaos. Since 1996, it's stacked 423 spots reliant on foot traffic, but varying fees by format demand scrutiny—street-front might edge out on margins. For snack investors eyeing $400K+ SBA-backed plays with low drama, this pretzel chain's stability tempts, though undisclosed earnings leave profitability a calculated bet on location hustle.
Analysis based on the 2026 Franchise Disclosure Document. All figures should be independently verified before making investment decisions.
How WETZEL'S PRETZELS Compares
Key Insights
- Lower investment than 82% of Fast Food franchises
| Franchise | Investment | Fee | Royalty | Locations |
|---|---|---|---|---|
WETZEL'S PRETZELS Current | $189K – $725K | $40K | 7.0% | 423 |
| MCDONALD'S | $1.5M – $2.6M | $45K | N/A | 12,772 |
| LITTLE CAESARS | $377K – $1.8M | $20K | 6.0% | 3,788 |
| AFC | $45K – $151K | $6K | 8.0% | 3,572 |
| KFC (NON-TRADITIONAL) | $1.2M – $4.2M | $45K | N/A | 3,404 |
| SONIC DRIVE-IN | $1.5M – $2.5M | $15K | 5.0% | 3,120 |
Fast Food Average 133 franchises | $598K – $1.6M | $35K | 6.1% | – |
* Comparison based on latest FDD filings. Investment ranges from Item 7, fees from Item 5. Showing top 5 of 133 Fast Food franchises by location count.
Locations & Growth
Outlet Growth Over Time
Total outlets at end of each year
Geographic Distribution (2025)
Outlets by state across the United States
+18 more states
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Unlock location growth dataSBA Loan History
Historical SBA 7(a) loan data for WETZEL'S PRETZELS 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.
100 SBA loans on record
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Unlock SBA loan historyFranchisee Contacts
196 franchisee contacts on file from official FDD filings.
196 Contacts Available
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Unlock contactsDue Diligence
Litigation (Item 3)
Disputes involving franchisees or former franchisees include claims of misrepresentation, violations of state franchise laws (e.g., FIPA, MFA, WFIPA), breach of contract, termination issues, post-termination obligations, and trademark infringement. Cases span predecessors like Extreme Pita, Kahala, SweetFrog, Famous Dave’s, Papa Murphy’s, and Wetzel’s, with class actions in Papa Murphy’s matters and recent franchisor-initiated suits by Kahala.
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
The total initial investment to open a WETZEL'S PRETZELS franchise ranges from $188,500 to $725,450. This includes a franchise fee of $40,000. Ongoing royalty fees are 7.0% of gross sales.
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