Franchise Deep Dive: Schlotzsky's Franchise Costs, Fees, Profit and Data

With backing and support from parent company Focus Brands, Schlotzsky’s appears to be on the brink of aggressive expansion in the not-so-distant future.

By Jeff DwyerStaff Writer

3:15PM • 10/31/23

LAST UPDATED: October 2023

FRANCHISE WEBSITE: Schlotzsky’s Franchising

NUMBER OF LOCATIONS: 338

REPORTED COST TO GET IN: $568,600 - $1,265,340

REPORTED ROI (Item 19): $891,141 - $1,102,012 (average net sales per quartile)

Schlotzsky's is a fast casual sandwich franchise concept known for its hearty sandwiches served on sourdough. The menu includes a variety of sandwiches, salads, soups and an array of desserts, including Cinnabon products. The brand is situated in the competitive sandwich segment alongside other brands like Jimmy John’s, Jersey Mike’s and Subway.

How Many Schlotzsky's Locations Are There?

Schlotzsky’s started as a small sandwich shop in Austin, Texas in 1971. Originally, it only served its most famous sandwich — the Original — and its hours varied based on the availability of muffaletta.

Schlotzsky's has since grown to have 338 locations across 28 states, with most locations in the south and southwestern regions of the country.

What Is the Schlotzsky's Business Model?

Schlotzsky's is a counter-serve quick service chain most well-known for its sandwiches. Their most famous sandwich is The Original, which contains ham, salami, 3 cheeses, a variety of vegetables and a signature sauce on a sourdough bun.

The brand also serves specialty pizzas, salads, soups, chips and dessert options, including Cinnabon cinnamon rolls. The brand offers dine-in, drive-thru, take-out, online ordering and catering options.

Schlotzsky's offers flexible footprints and franchise outlet options including:

Non-traditional shops (within malls or airports, for example)
Drive-thru shops
Traditional, stand alone shops

How Much Can Schlotzsky's Franchise Owners Make?

According to Schlotzsky's 2023 Franchise Disclosure Document (FDD), the total average net sales per quartile for 212 franchise locations with a drive-thru was $1,102,012.

The averages for each quartile for the fiscal year of 2022 of locations with a drive-thru are indicated below:

Top Quartile: $1,638,915
Second Quartile: $1,184,553
Third Quartile: $927,011
Bottom Quartile: $657,569

The total average net sales per quartile for 36 traditional franchises without a drive-thru for the fiscal year of 2022 was $891,141.

The averages for each quartile for the fiscal year of 2022 of locations without a drive-thru are indicated below:

Top Quartile: $1,569,832
Second Quartile: $911,551
Third Quartile: $680,140
Bottom Quartile: $403,042

The averages listed above do not include non-traditional locations, such as those in airports or shopping malls, franchised locations without a Cinnabon Express included and other co-branded franchised locations.

How Much Does It Cost to Open a Schlotzsky's?

The estimated total investment necessary to begin the operation of a Schlotzsky's franchise ranges from $568,600 - $1,265,340.

The costs to begin an operation of a Schlotzsky’s location are indicated below:

Franchise Fee: $35,500
Construction and Build Out Costs: $293,050 - $526,500
Permitting: $1,800 - $11,000
Equipment Package: $87,750 - $170,820
Millwork: $40,500 - $53,820
Furniture: $17,550 - $35,100
Menu Board, Graphics and Interior Signage: $12,00 - $22,600
Exterior Signage: $20,400 - $46,800
Computer System: $26,000 - $60,000
Smallwares: $6,700 - $7,500
TV/Music: $2,000 - $3,000
Architect/Engineer: $5,000 - $50,000
Rent: $5,000 - $15,600
Grand Opening Marketing: $15,000 - $25,000
Legal and Accounting Fees: $3,000 - $12,000
Insurance: $1,750 - $8,800
Misc. Opening Costs and Office Supplies: $1,750 - $8,800
Security Deposits: $7,000 - $10,000
Training Fees: $0 - $5,200
Travel and Living Expenses During Training: $10,000 - $40,000
Opening Inventory: $7,500 - $25,000
Cinnabon Express Bakery Initial Franchise Fee: $8,000
Cinnabon Express Bakery: $23,600 - $40,100
Additional Funds (Up to 3 Months): $39,000 - $48,000

Schlotzsky’s also requires potential franchisees to have a net worth of $1,000,000 and $300,000 minimum in liquid capital.

What Is the Franchise Fee for Schlotzsky's?

Schlotzsky's requires a franchise fee of $35,500.

As a limited time incentive, Schlotzsky’s is offering a franchise fee of $10,000 up until December 20, 2023.

The brand also provides a discounted franchise fee of $20,000 to qualifying veterans or members of the Armed Forces.

Who Is the Leadership of Schlotzsky's?

What Helpful Articles Can I Read to Learn More About Schlotzsky's?

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