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Schlotzsky's Deli
Since 1971, Schlotzsky’s® has been the home of The Original® toasted sandwich. The menu has evolved with customers’ tastes to include the highest quality sandwiches, pizzas, salads, and soups available today. With approximately 365 locations worldwide, Schlotzsky’s is the fast-casual choice for a quick, healthful, and fresh dining experience.
Franchisor Background
Year Established: 1971
Franchising Since: 1977
IFA Member
Operating Units:
Franchised Units: 297 88.7%
Company-Owned Units: 38 11.3%
______ _____
Total Operating Units: 335 100%
Geographic Distribution:
U.S.: 341 95.3% In 35 States
Canada: 0 0% In 0 Canadian Provinces
International: 17 4.7% In 6 Foreign Countries
______ _____
Total: 358 100%
North America:
States/Provinces with the largest number of operating units:
Density Units
Registered in Following Registration States:
Financial Requirements
Investment:
Minimum Net Worth: $2.2MM (3 store minimum)
Cash Investment: $650K (3 store minimum)
Total Investment: $461.7-774K
Average Total Investment: $618K
Fees:
Initial Franchise Fee: $30K
Average Franchise Fee: $30K
On-Going Royalty: 6%
Average Royalty: 6%
Advertising Fee: 4%
Average Number of Employees: 5 Full-time, 20 Part-time
Space Needs (in square footage): 2,800 +/-
Preferred Sites: Strip Center, Regional Mall
Other Sites: Non-Traditional Venues
Encourage Conversions? Yes
Earnings Claims Provided? Yes
Listed in the SBA Registry? No
Support and Training
International Franchise Association: Yes
Canadian Franchise Association: No
Franchisee Association/Member: Yes, Not a Member
Size of Corporate Staff: 0
Site Selection Assistance? Yes
Lease Negotiation Assistance? Yes
Financial Assistance? No
Marketing Support:
Co-Op Advertising: Yes
National Advertising: Yes
Regional Advertising: No
Local Advertising: Yes
Marketing Materials: None Specified
Additional Services: None Specified
Other Marketing Support: None Specified
On-Going Support:
Central Data Processing: Not Applicable
Central Purchasing: Not Applicable
Field Operation Evaluation: Included in Fees
Field Training: Included in Fees
Initial Store Opening: Included in Fees
Inventory Control: Included in Fees
Franchisee Newsletter: Included in Fees
Regional or National Meetings: Included in Fees
800 Telephone Hotline: Included in Fees
Training:
1. Austin, TX 3 Weeks
Franchisee Qualifications
Ranked from 1 (unimportant) to 5 (important):
Financial Net Worth: 5
General Business Experience: 5
Specific Industry Experience: 4
Formal Education: 3
Psychological Profile: 3
Personal Interview(s): 5
Minority Representation
Units Owned by Minorities:
African-American: 2
Asian-American: 45
Hispanic: 3
Native American: N/A
Other: 7
Specific Minority: Financing Referrals, Franchise Fee Deferment, Franchise Fee Reduction, Lease Negotiations, Managerial Training, Mentoring, Growth Through Diversity
Terms of Contract
Term of Initial Contract: 20 Year(s)
Term of Renewal Period: 10 Year(s)
Passive Ownership: Allowed, But Discouraged
Area Development Agreements? No
Sub-Franchising Contracts? No
Franchisees Allowed to Expand Within Territory? Yes
Expansion Plans
Projected New Units Over Next 12 months:
U.S.: Yes
Canada: No
Overseas: No