2014

The 'World's Best Soft Pretzels,' hand-rolled and served hot with high consumer acceptance and precision portion control. May be operated in both traditional and non-traditional venues.

Year	Franchised	Change	Company-Owned	Change	Total	Change
2012	228	5.56%	1	--	229	6.02%
2011	216	5.37%	0	--	216	5.37%
2010	205	--	0	--	205	--

Investment Required

The franchise fee for a traditional Pretzelmaker store is $30,000. If you purchase additional franchise stores, the fee per franchise ranges from $15,000 to $22,500 for each additional franchise. Pretzelmaker provides the following range of investments required to open your initial franchise. The range assumes that all items are paid for in cash. To the extent that you choose to finance any of these expense items, your front-end investment could be substantially reduced.

Item	Established Low Range	Established High Range
Initial Franchise Fee	$30,000	$30,000
Grand Opening Marketing	$3,000	$5,000
Travel and Living Expenses While Training	$2,000	$4,000
Dough Ingredients	$1,000	$5,000
Other Opening Inventory	$500	$1,000
Architectural Fees	$3,800	$6,750
Furniture, Fixtures, Equipment and Décor	$41,000	$58,000
Signs	$3,000	$6,000
Prepaid Rent and Security Deposit	$2,500	$5,000
Leasehold Improvements	$24,650	$71,700
Utility Deposits	$2,200	$3,000
Professional Fees	$1,000	$6,000
Computer System	$2,650	$5,500
Business Licenses, Permits, Etc. (6 Months)	$1,500	$2,500
Insurance (3 Months)	$2,500	$3,500
Additional Funds (3 Months)	$8,000	$12,000
Total Initial Investment	$129,300	$224,950

Ongoing Expenses

Pretzelmaker franchisees pay a weekly royalty fee equal to 7% of the preceding week's net sales, as well as a marketing fee equal to 1.5% of the preceding week's net sales. Additional fees include continuing inventory, additional training fees, and insurance fees.

What You Get: Training and Support

Pretzelmaker provides their extensive initial training program to the Operating Principal, Manager, and up to three employees of the new franchised business. The first stage of training may include up to 2 days of orientation at the Pretzelmaker offices in Norcross, GA, or by webinar on the topics of merchandising, construction, business planning, purchasing, and our new Store checklist. The second phase of training involves 3 days of on-the-job training at a designated training location, followed by 5 additional training days at our offices. If desired, Pretzelmaker will also provide 2-5 days of onsite, pre-opening assistance at your store location.

Territory

Pretzelmaker does not grant exclusive territories.

Note: The tables and information regarding the number of operating units, investment required, ongoing expenses, training and territory grants were taken from the company's 2013 FDD.