About Fazoli's Franchise
Fazoli's is a fast casual Italian restaurant franchise known for its affordable menu of pastas, breadsticks, pizza, and Italian subs.
Backed by FAT Brands, Inc., the brand has been franchising since 2006 and has built a loyal following with its signature unlimited breadsticks and made to order Italian favorites at quick service speed.
The franchise fee is $50,000.
Fazoli's Franchise Cost & Fees
Minimum Investment
$473K
Average Investment
$1.4M
Maximum Investment
$2.4M
| Fee Type | Amount | Notes |
|---|---|---|
| Initial Franchise Fee | $50,000 | One-time payment upon signing |
| Royalty Fee | 5.0% of Gross Receipts of gross sales | Ongoing; paid monthly |
| Marketing/Ad Fund | 4% of Gross Receipts | National brand fund |
| Total Investment Range | $472,500 – $2,399,500 | Includes build-out, inventory, working capital |
The investment range of $473K–$2.4M reflects variability in build-out costs, store size, lease terms, and market. The combined royalty (5.0% of Gross Receipts) and marketing fee (4% of Gross Receipts) are ongoing costs paid as a percentage of gross sales.
Investment Breakdown (Item 7)
| Item | Low | High |
|---|---|---|
| Franchise Fee | $50,000 | $50,000 |
| Site Preparation | $15,000 | $485,000 |
| Architectural Services | $20,000 | $75,000 |
| Cost of the Building/Premises Construction | $165,000 | $1,020,000 |
| Furniture, Fixtures, and Equipment | $170,000 | $470,000 |
| Information System and related technology | $10,000 | $59,000 |
| Training Expenses | $5,000 | $35,000 |
| Inventory & Uniforms | $2,500 | $30,000 |
| Security Deposits, Utilities and Insurance | $5,000 | $27,000 |
| Trade Area Analysis, Sales Projection and Sales Impact Report | $0 | $15,000 |
| Pre-opening and Opening Advertising | $0 | $7,500 |
| Additional Funds - 3 Months | $30,000 | $120,000 |
Additional Fees (Item 6)
| Fee Type | Amount |
|---|---|
| Transfer Fee | 50% of our then current franchise fee plus $5,000 to $7,000 for third party transfer expenses |
| Renewal Fee | 40% of our then current franchise fee per restaurant |
| Technology Fee | $1,950 - $3,000 annually |
| Audit Fee | $3,000 to $5,000 |
| Interest on Late Payments | Lesser of: 18% or such higher rate allowed by law |
| Accounting Expenses | $3,000 to $5,000 |
| Additional Assistance | Our actual expenses. Approximately $2,250 per member for additional opening assistance; approximately $9,000 for 1 coordinator and 3 associates for continuing opening assistance; and approximately $2,500 for a 45-hour workweek for 1 managerial representative for post-opening operational assistance. |
| Software Subscription Fees | $9,804 - $15,300 |
| Remodel/Refurbish | $150,000 to $450,000 |
| Failure to De-identify Costs | Our costs plus interim license fees of $500 per day |
| Insurance Default Costs | Our costs to cure |
| Default Costs | Varies (Possible liquidated damages, costs, late fees or attorneys fees) |
| Indemnification | Varies (Reimburse us if we incur any expense, including attorney fees and other costs, or are held liable for claims) |
| Testing and Inspection Expenses for Non-approved Brand or Item | $500 to $2,500 |
| Specific Training courses | ServSafe fee (Market Price) |
| Training Cancellation Fee | $500 plus cost of training materials and additional non-coverable fees incurred |
Training Program (Item 11)
| Detail | Information |
|---|---|
| Total Duration | 6 weeks |
| Classroom Training | 40-45 hours per week for 4 weeks (Hourly Manager); 45-50 hours per week for 6 weeks (Salaried Manager) |
| On-the-Job Training | 40-45 hours per week for 4 weeks (Hourly Manager); 45-50 hours per week for 6 weeks (Salaried Manager) |
| Training Location | Company Certified Training Restaurant |
| Additional Training | We currently do not offer or require any additional training programs or refresher courses. However, during the 15-year Franchise Agreement term, we may require additional training courses in the future. |
Territory Rights (Item 12)
| Detail | Information |
|---|---|
| Territory Type | Non-exclusive |
| Exclusive Territory | No |
| Description | You will not receive an exclusive territory under your Franchise Agreement. You may face competition from other franchisees, from outlets that we or our affiliates own, or from other channels of distribution or competitive brands that we or our affiliates control. You may only operate a Fazoli’s Restaurant at the specific site designated in the Franchise Agreement and under the terms provided there. Relocation requires franchisor approval and may require a new Franchise Agreement and initial Franchise Fee. |
Renewal, Termination & Transfer (Item 17)
| Detail | Information |
|---|---|
| Initial Term | 15 years |
| Renewal Term | Up to 2 additional 10-year terms |
| Renewal Fee | 40% of our then current franchise fee per restaurant |
| Renewal Conditions | Give us proper notice, sign the Renewal Agreement or the then current Franchise Agreement, pay a renewal fee or the then current Franchise Fee, and remodel the Franchise Restaurant (if we require). You may be asked to sign a contract with materially different terms and conditions than your original contract. |
| Transfer Fee | 50% of our then current initial franchise fee plus $5,000 to $7,000 for third party transfer expenses |
| Transfer Conditions | No defaults, new franchisee qualifies, then current Franchise Agreement signed, assignment form signed, training arranged if applicable, transfer fee paid, confidentiality, non-competition and guaranty agreements signed and assignee not a competitor. |
| Termination for Cause | We can terminate if you commit any of the several violations/defaults listed in the Franchise Agreement, including but not limited to: cessation of operations, bankruptcy, felony conviction, unauthorized transfer of interests, misuse of Proprietary Marks, disclosure of confidential information, material misrepresentation, failure to repair premises, unsatisfied judgments, health/safety hazard, or failure to open the restaurant on time. Certain defaults allow a 30-day cure period. |
| Non-Compete Period | 2 years |
| Non-Compete Details | During the term of the franchise and for 2 years after termination or expiration, the franchisee and its related parties may not own, maintain, engage in, or have any interest in any Italian Restaurant within a 5-mile radius of the franchise location or any other Fazoli’s Restaurant. This restriction applies unless the Italian Restaurant's pasta/pizza sales constitute less than 20% of its total sales. |
Operations & Supply (Items 8 & 15)
| Detail | Information |
|---|---|
| Owner-Operator Required | Yes |
| Participation Details | Unless approved otherwise in writing, the franchisee (if an individual), or its owners (if a legal entity), or a Designated Manager must personally devote full time, energy, and best efforts exclusively to the management, operation, and financial matters of the Franchise Restaurant. If the franchisee or its affiliates own or operate three or more Fazoli's Restaurants, a Key Operator may be required to devote full time to supervision. The Key Operator may, but need not, hold an equity interest in the franchise business. |
| Required Suppliers | Franchisee must purchase proprietary items either directly from the franchisor or from sources designated by the franchisor. The only approved distributor to the System is Performance Food Group, Inc. ("PFG"). |
| Supply Restrictions | Franchisee must adhere to uniform standards and specifications for supplies, packaging, food, beverages, ingredients, equipment, fixtures, furnishings, inventory and distribution by purchasing and utilizing items designated as Approved Brands. Proprietary items include specific pastas/bread (Spaghetti, Fettuccine, Mostaccioli, Ravioli, Tortellini, Lasagna, Breadsticks, Submarinos® bread, Pizza Crust), desserts (Chocolate Chip Cookies, Brownie, Cheesecakes), proteins/cheese (Meatballs, Spicy Sausage, Bacon, Breaded Chicken Parmesan, Chicken Breast Pieces, Mozzarella/Provolone Cheese, Cheese Spice Blend), sauces (Marinara, Alfredo, Meat, Pizza), miscellaneous items (Breadstick Oil, Granulated Garlic Salt, Fazoli's-labeled Salad Dressings, LTO items, Fazoli's Packaging), and drinks (Italian Lemon Ice, Syrups for Lemon Ice). Franchisees must also purchase two types of ovens (Lincoln Impinger II chain oven and Turbochef High Conveyor 2020 or Ovention electric ovens) and a 3-station point of sale system from designated suppliers. |
| Franchisor Revenue from Suppliers | PepsiCo, Inc. pays funds to the franchisor or FSM based on franchisee purchases. Approved food and paper suppliers pay a variable fee to FSM to defray quality assurance and procurement costs. Payments to FSM for this purpose were $460,430.93 for the fiscal period December 22, 2022, through December 31, 2023. The franchisor and its affiliates do not derive income from other designated suppliers. |
Financing (Item 10)
| Detail | Information |
|---|---|
| Financing Available | No |
| Description | We do not offer any financing arrangements to you, either directly or indirectly. We do not guarantee your note, lease or other obligation. |
Fazoli's Franchise Earnings — Item 19
Average Revenue
$1.4M
Median Revenue
$1.4M
Revenue Range
$819K – $2.5M
Sample Size
57 units
Past financial performance does not guarantee future results. Individual results will vary.
Fazoli's Litigation & Risk Flags
1 Pending Action ListedReview the full FDD for details on pending litigation.
Bankruptcy History DisclosedA bankruptcy disclosure is present in this FDD.
Litigation and bankruptcy data is sourced from Items 3 and 4 of the FDD. Always verify current status directly from the most recent FDD.
Fazoli's System Growth
Total Units
207
Franchised
150
Company-Owned
57
Fazoli's currently operates 150 franchised locations and 57 company-owned units. Unit count data is sourced from Item 20 of the FDD.
Unit History (Item 20)
| Year | Opened | Closed | Total |
|---|---|---|---|
| 2021 | 0 | 4 | 209 |
| 2021 | 6 | 0 | 215 |
| 2022 | 0 | 6 | 209 |
| 2023 | 0 | 2 | 207 |
Transfers: 0 | Closures: 7
State Registrations
Registered in 14 states: CA, HI, IL, IN, MD, MI, MN, NY, ND, RI, SD, VA, WA, WI
Franchisor Financials (Item 21)
Revenue
$11.7M
Net Income
$-1,269,908
Total Assets
$15.9M
Audited by Macias Gini & O'Connell LLP for year ending December 31, 2023.
Fazoli's Franchise — FAQ
The total investment to open a Fazoli's franchise ranges from $472,500 to $2,399,500, per their Franchise Disclosure Document. This includes the initial franchise fee of $50,000. The investment covers build-out, inventory, equipment, signage, working capital, and other startup costs.
Fazoli's charges a royalty fee of 5.0% of Gross Receipts of gross sales, plus a 4% of Gross Receipts contribution to the marketing/advertising fund. These fees are paid on an ongoing basis.
You can download the Fazoli's Franchise Disclosure Document free on this page. The FDD is a public document filed with state franchise registries. Always also request the current FDD directly from Fazoli's to ensure you have the most up-to-date version.
According to the Item 19 financial performance representation in their FDD, Fazoli's franchise owners report average revenue of $1.4M and median revenue of $1.4M. This is based on a sample of 57 units. Past performance does not guarantee future results.
Fazoli's has been franchising since 2006. The FDD shows an investment range of $472,500-$2,399,500, a 5.0% of Gross Receipts royalty, and includes an Item 19 earnings disclosure. There are 1 pending litigation action(s). Review the full FDD and contact current franchisees listed in Item 20 before making any investment decision.
The franchise fee is $50,000 and the total investment ranges from $472,500 to $2,399,500 depending on location size and market. Contact the franchisor directly for current net worth and liquid capital requirements, territory availability, and application details.
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Data Source & Disclaimer: This website is for informational purposes only. It is not an offer to sell or buy a franchise. This profile is based on publicly available FDD data sourced from state franchise registry filings. All information is for research purposes only and does not constitute legal, financial, or investment advice. Data may be outdated or contain errors. Always obtain the current FDD directly from Fazoli's and consult a qualified franchise attorney before making any investment decision. FranchiseOverview.com is operated by Franchising Compliance, LLC and is not affiliated with Fazoli's or any of its subsidiaries. To report an inaccuracy: info@franchiseoverview.com