About Philly Pretzel Factory Franchise
Philly Pretzel Factory is a franchise specializing in freshly baked, hand twisted soft pretzels and related snack items.
The brand brings the authentic taste of Philadelphia style soft pretzels to communities nationwide, offering a simple, focused menu that appeals to snack lovers of all ages.
The franchise fee is $35,000.
Philly Pretzel Factory Franchise Cost & Fees
| Fee Type | Amount | Notes |
|---|---|---|
| Initial Franchise Fee | $35,000 | One-time payment upon signing |
| Royalty Fee | 6% of Gross Sales of gross sales | Ongoing; paid monthly |
| Marketing/Ad Fund | 3% of Gross Sales | National brand fund |
| Total Investment Range | $169,935 – $405,491 | Includes build-out, inventory, working capital |
The investment range of $170K–$405K reflects variability in build-out costs, store size, lease terms, and market. The combined royalty (6% of Gross Sales) and marketing fee (3% of Gross Sales) are ongoing costs paid as a percentage of gross sales.
Investment Breakdown (Item 7)
| Item | Low | High |
|---|---|---|
| Rent3 | $1,100 | $7,500 |
| Lease Deposit4 | $1,100 | $15,000 |
| Architect Fees5 | $5,000 | $11,000 |
| Construction/ Leasehold Improvements6 | $48,681 | $135,000 |
| Equipment7 | $51,354 | $137,491 |
| Computer System, Office Supplies & Miscellaneous Equipment8 | $400 | $1,000 |
| Promotional Materials9 | $500 | $1,500 |
| Grand Opening Advertising Requirement10 | $5,000 | $5,000 |
| Permits and Licenses11 | $400 | $4,000 |
| Training Expenses12 | $100 | $1,000 |
| Signage13 | $3,200 | $10,000 |
| In-Store Camera Surveillance System14 | $500 | $1,000 |
| Prepaid Insurance Premium15 | $3,000 | $5,000 |
| Utility and Telephone Deposits16 | $500 | $2,000 |
| Legal Costs17 | $500 | $1,500 |
| Initial Inventory18 | $3,500 | $7,500 |
Additional Fees (Item 6)
| Fee Type | Amount |
|---|---|
| Transfer Fee | 6% of Gross Sales |
| Audit Fee | $2,000 |
| POS System Fees And transaction fees. | $109 |
| Collection Costs, Attorneys’ Fees and Interest | Fees and Costs Incurred/Interest at 18% or Highest Lawful Interest Rate for Comm |
| Additional Training | $0 |
| Supplier Approval/Testing Costs | $3,000 |
| Intranet | $0 |
| Additional Support | $1,000 |
| Year Seven Remodeling and Refurbishment Expenses | $30,000 |
| Rent for Non- Traditional Location | $1,250 |
| Failure to Commence Operations Fee – Non-Traditional Location | $10,000 |
| Failure to Operate Fee – Non- Traditional Location | $300 |
| Failure to maintain premises – Non- Traditional Location | Generally, the cost of repair plus an administrative charge of 10% of the cost t |
| Lien Removal – Store-in- Store Location | Generally, the cost of lien plus an additional 10% administrative fee, plus inte |
| Interest on Late rent Payments – Non- Traditional Location | 5% per annum or maximum amount allowed by law on any rent pay unpaid when due |
| Hold Over Rent – Non-Traditional Location | 150% of then-current monthly rent |
| Relocation Fee | $0 |
Training Program (Item 11)
| Detail | Information |
|---|---|
| Total Duration | 30 hours classroom, 4 hours on-the-job |
| Classroom Training | 30 hours |
| On-the-Job Training | 4 hours |
Territory Rights (Item 12)
| Detail | Information |
|---|---|
| Territory Type | protected |
Philly Pretzel Factory Franchise Earnings — Item 19
Philly Pretzel Factory does not include an Item 19 financial performance representation in their FDD. Contact information for current and former franchisees is listed in Item 20 of the FDD.
Philly Pretzel Factory Litigation & Risk Flags
Litigation and bankruptcy data is sourced from Items 3 and 4 of the FDD. Always verify current status directly from the most recent FDD.
Philly Pretzel Factory System Growth
Philly Pretzel Factory currently operates 152 franchised locations and 0 company-owned units. Unit count data is sourced from Item 20 of the FDD.
Unit History (Item 20)
| Year | Opened | Closed | Total |
|---|---|---|---|
| 2019 | 1 | 1 | |
| 2019 | 0 | 3 | |
| 2019 | 0 | 0 | |
| 2019 | 0 | 0 | |
| 2019 | 0 | 0 | |
| 2019 | 0 | 0 | |
| 2019 | 0 | 2 | |
| 2019 | 0 | 1 | |
| 2019 | 0 | 1 | |
| 2020 | 0 | 0 | |
| 2020 | 0 | 3 | |
| 2020 | 0 | 0 | |
| 2020 | 0 | 0 | |
| 2020 | 0 | 0 | |
| 2020 | 0 | 0 | |
| 2020 | 0 | 2 | |
| 2020 | 0 | 1 | |
| 2020 | 0 | 1 | |
| 2021 | 1 | 0 | |
| 2021 | 0 | 2 | |
| 2021 | 0 | 0 | |
| 2021 | 0 | 0 | |
| 2021 | 0 | 0 | |
| 2021 | 0 | 0 | |
| 2021 | 0 | 2 | |
| 2021 | 0 | 1 |
Philly Pretzel Factory Franchise — FAQ
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