About Wetzel's Pretzels Unit Franchise
Wetzel's Pretzels is a beloved bakery franchise specializing in hand rolled, fresh baked soft pretzels and related snack items.
Franchising since 1996 under the parent company MTY Franchising USA, Inc., the brand has become one of the most recognized names in the snack franchise category.
Wetzel's offers multiple franchise formats including traditional bakery locations, concession trucks and trailers, and the Twisted by Wetzel's concept.
Wetzel's Pretzels Unit Franchise Cost & Fees
Minimum Investment
$179K
Average Investment
$434K
Maximum Investment
$690K
| Fee Type | Amount | Notes |
|---|---|---|
| Initial Franchise Fee | $40,000 | One-time payment upon signing |
| Royalty Fee | 7% of Adjusted Gross Revenue, except for TWISTED BY WETZEL’S Bakeries (5% of Adjusted Gross Revenue) of gross sales | Ongoing; paid monthly |
| Marketing/Ad Fund | For TWISTED BY WETZEL’S, 1% to 5% of Adjusted Gross Revenue; For all other franchisees, 1% of Adjusted Gross Revenue | National brand fund |
| Total Investment Range | $178,500 – $689,750 | Includes build-out, inventory, working capital |
The investment range of $179K–$690K reflects variability in build-out costs, store size, lease terms, and market. The combined royalty (7% of Adjusted Gross Revenue, except for TWISTED BY WETZEL’S Bakeries (5% of Adjusted Gross Revenue)) and marketing fee (For TWISTED BY WETZEL’S, 1% to 5% of Adjusted Gross Revenue; For all other franchisees, 1% of Adjusted Gross Revenue) are ongoing costs paid as a percentage of gross sales.
Investment Breakdown (Item 7)
| Item | Low | High |
|---|---|---|
| Initial Franchise Fee | $20,000 | $40,000 |
| Lease Review Fee | $3,500 | $7,000 |
| Business Premises | $5,000 | $25,000 |
| Leasehold Improvements | $50,000 | $400,000 |
| Food Preparation Equipment | $49,000 | $89,000 |
| Utility Deposits, Licenses, Permits | $500 | $5,000 |
| Insurance | $500 | $2,500 |
| Signs & Menu Boards | $5,000 | $16,000 |
| Digital Display Boards | $5,000 | $7,500 |
| POS System | $500 | $900 |
| Initial Inventory & Smallwares | $5,500 | $10,000 |
| Training Fee for Additional Trainee | $0 | $750 |
| Training Expenses | $1,000 | $2,500 |
| Grand Opening Advertising | $500 | $2,500 |
| Office Equipment & Supplies | $500 | $2,500 |
| Professional Fees | $1,000 | $3,100 |
| Architect Engineers & Const. Manager | $6,000 | $20,000 |
| Additional Funds - first 90 days | $25,000 | $55,500 |
Additional Fees (Item 6)
| Fee Type | Amount |
|---|---|
| Transfer Fee | For a Bakery: $40,000 (first 12 months), $20,000 (thereafter); For non-traditional location: $20,000 (first 12 months), $10,000 (thereafter); For a Concession Truck or Trailer: $3,750 |
| Renewal Fee | 50% of then-current initial franchise fee for a 10-year renewal term (pro-rated for shorter terms); For a Concession Truck or Trailer: $3,750 |
| Technology Fee | Approximately $200 (monthly or as incurred) |
| Audit Fee | All expenses of audit if underpayment exceeds 3% or if audit was undertaken because you did not submit annual financial statements in a timely manner |
| Local Marketing Obligation for TWISTED BY WETZEL’S Only | At least 5% of Adjusted Gross Revenue (less Advertising Fund Contribution) |
| Secret Shopper Fee | $50 per shop (monthly) |
| Repeat Inspection Fee | $500 |
| Bi-Annual Convention Registration | $1,000 plus incidental costs to attend |
| Ongoing Training Fees and Initial Training for New Managers | Cost plus 20% |
| Relocation Fee | $7,500 |
| Remote Mobile Unit Transfer Fee | ½ of current Remote Mobile Unit Fee |
| Interest on Late Payments | Lower of 18% per year or highest rate allowed by law |
| Base Rent | Monthly rent |
| Sublease Fee | $200 monthly or as agreed by Parties, in addition to the Base Rent |
| Late Fee for Financial Statements | $100 per week, per store |
| Lease Review Fee | $3,500 to $7,000 |
| Lease Negotiation Fee | $3,500 to $7,000 |
| Site Evaluation Fee for TWISTED BY WETZEL’S Only | $750 after the first evaluation trip |
| Supplier Fee | Unlikely to exceed $500 |
| Private Offering Fee | $5,000 |
| Additional Concession Truck or Trailer Fee | $5,000 per each additional Concession Truck or Trailer |
Training Program (Item 11)
| Detail | Information |
|---|---|
| Total Duration | 80 hours for WETZEL'S PRETZELS Bakeries and Concession Trucks or Trailers; 16 hours for TWISTED BY WETZEL'S Bakeries |
| Classroom Training | 40 hours for WETZEL'S PRETZELS Bakeries and Concession Trucks or Trailers; 2 hours for TWISTED BY WETZEL'S Bakeries |
| On-the-Job Training | 40 hours for WETZEL'S PRETZELS Bakeries and Concession Trucks or Trailers; 14 hours for TWISTED BY WETZEL'S Bakeries |
| Training Location | Classroom training is provided at the corporate training center in Pasadena, California. On-the-job training is provided at one of four company-owned Bakeries located in Southern California, Denver, Colorado, Orlando, Florida, or Las Vegas, Nevada. |
| Additional Training | Continuing education programs are offered at the Bi-Annual Convention. Additional training fees of $750 may apply for more than three trainees. An administrative fee of 20% of cost may be charged for new Designated Manager training or continuing education programs. |
Territory Rights (Item 12)
| Detail | Information |
|---|---|
| Territory Type | Protected Area or Mobile Area |
| Exclusive Territory | No |
| Territory Size | For WETZEL’S PRETZELS Bakeries: smaller of one-half (½) mile radius or the shopping center/mall. For TWISTED BY WETZEL’S Bakeries: typically one (1) to five (5) miles radius depending on population density. For Concession Trucks or Trailers: a Mobile Area with approximately 500,000-2,000,000 people. |
| Description | For WETZEL’S PRETZELS Bakeries, a Protected Area is granted, defined as the smaller of a one-half mile radius around the Approved Location or the shopping center/mall. For TWISTED BY WETZEL’S Bakeries, a Protected Area is granted, typically one to five miles in radius based on population density. For Concession Trucks or Trailers, a Mobile Area is granted, which is a geographic area described in Exhibit A, excluding sites within one-half mile of any Bakery. The franchisor reserves rights to sell proprietary products through other channels and to operate or franchise other competitive brands outside the Protected/Mobile Area. |
Renewal, Termination & Transfer (Item 17)
| Detail | Information |
|---|---|
| Initial Term | 10 years for WETZEL’S PRETZELS Bakeries (or expiration of lease/sublease, whichever is earlier); 10 years for TWISTED BY WETZEL’S Bakeries; 5 years for Concession Truck or Trailer; Remote Mobile Unit term is shorter of Bakery lease or temporary space lease. |
| Renewal Term | 10 years for WETZEL’S PRETZELS Bakeries; 5 years for TWISTED BY WETZEL’S Bakeries; 5 years for Concession Truck or Trailer; Remote Mobile Unit renewal is tied to Bakery lease renewal. |
| Renewal Fee | 50% of then-current initial franchise fee for a 10-year renewal term (pro-rated for shorter terms); $3,750 for a Concession Truck or Trailer. |
| Renewal Conditions | Must be in good standing, give timely notice, sign a new franchise agreement (potentially with materially different terms), remodel the Bakery/Concession Truck/Trailer and equipment to current standards, renew lease/sublease, employ approved contractor/manager, complete supplemental training (if required), and pay the renewal fee and sign a release. |
| Transfer Fee | For a Bakery: $40,000 (first 12 months), $20,000 (thereafter); For non-traditional location: $20,000 (first 12 months), $10,000 (thereafter); For a Concession Truck or Trailer: $3,750. |
| Transfer Conditions | Prospective transferee must meet franchisor's criteria (satisfactory character, financial responsibility, net worth, work experience, aptitude, ability to devote time, English proficiency, no conflicting interests), provide governing documents, agree not to assert security interests, complete and sign a letter of agency, pay all outstanding debts, cure all defaults, engage an approved contractor/manager, remodel/redecorate the premises and replace equipment to current standards, complete initial training, sign a release of claims, and ensure terms do not interfere with financial feasibility. |
| Termination for Cause | The franchisor can terminate the agreement upon uncured or non-curable material events of default. Curable defaults include failure to submit timely reports, failure to meet lease negotiation/development requirements, general defaults (30 days to cure), or non-payment (5 days to cure). Non-curable defaults include failure to complete initial training, misuse of marks, material misrepresentation, abandonment, repeated defaults, unapproved transfer, insolvency, criminal misconduct, or competition with the Franchise Network. |
| Non-Compete Period | During the term of the Agreement and for two (2) years after its Termination. |
| Non-Compete Details | Franchisee may not directly or indirectly engage in any competitive business featuring fresh-baked soft pretzels within the location of their Bakery, the Protected Area, five (5) miles of the outer boundaries of the Protected Area, or within five (5) miles of any other Wetzel’s Pretzels bakery owned/developed by Franchisor or its affiliates. This also applies to employees and related parties. |
Operations & Supply (Items 8 & 15)
| Detail | Information |
|---|---|
| Owner-Operator Required | No |
| Participation Details | Franchisees are required to either personally supervise the Franchised Business or employ a Designated Manager. The Designated Manager must devote at least 40 hours per week to on-premises management and operation, be certified by the franchisor, and be present whenever the business is open. If the Designated Manager's employment terminates, a successor must be appointed and certified within 30 days. |
| Required Suppliers | Wetzel’s Pretzels has designated one supplier for proprietary pretzel dough mix, which must be used exclusively. They are also the sole approved supplier for hats, shirts, uniforms, cups, paper goods, and other items bearing the Marks. Franchisees must buy electronic cash registers, receipt printers, and modems from designated suppliers. Approved suppliers are provided for other food items, toppings, and condiments, but franchisees may seek approval for alternate suppliers. |
| Supply Restrictions | Franchisees must purchase proprietary pretzel dough mix exclusively from the designated supplier. Other proprietary food items, hats, shirts, uniforms, cups, paper goods, and items bearing the Marks must also be purchased from designated suppliers. Electronic cash registers, receipt printers, and modems must meet franchisor specifications and be purchased from designated suppliers. Approval for alternate suppliers for non-exclusive items requires submitting product specifications and information for review, which may incur inspection costs up to $500. |
| Franchisor Revenue from Suppliers | $43,895,158 (7.5% of total consolidated revenue) from sales of products, services, and vendor allowances, with $32,499,276 from vendor allowances based on system-wide purchases for the fiscal year ended November 30, 2023. |
Financing (Item 10)
| Detail | Information |
|---|---|
| Financing Available | No |
| Description | We do not offer direct or indirect financing. We will not guarantee your note, lease, or obligation. |
Wetzel's Pretzels Unit Franchise Earnings — Item 19
Average Revenue
$872K
Median Revenue
$788K
Revenue Range
$81K – $2.6M
Sample Size
243 units
Past financial performance does not guarantee future results. Individual results will vary.
Wetzel's Pretzels Unit Litigation & Risk Flags
Clean Litigation RecordWetzel's Pretzels Unit has no pending litigation actions listed in their FDD. There is also no bankruptcy history disclosed.
Litigation and bankruptcy data is sourced from Items 3 and 4 of the FDD. Always verify current status directly from the most recent FDD.
Wetzel's Pretzels Unit System Growth
Total Units
386
Franchised
346
Company-Owned
40
Wetzel's Pretzels Unit currently operates 346 franchised locations and 40 company-owned units. Unit count data is sourced from Item 20 of the FDD.
Unit History (Item 20)
| Year | Opened | Closed | Total |
|---|---|---|---|
| 2021 | 18 | 15 | 309 |
| 2022 | 23 | 11 | 321 |
| 2023 | 36 | 11 | 346 |
Transfers: 14 | Closures: 11
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
$580.3M
Net Income
$17.0M
Total Assets
$1459.4M
Audited by PricewaterhouseCoopers LLP for year ending November 30.
Wetzel's Pretzels Unit Franchise — FAQ
The total investment to open a Wetzel's Pretzels Unit franchise ranges from $178,500 to $689,750, per their Franchise Disclosure Document. This includes the initial franchise fee of $40,000. The investment covers build-out, inventory, equipment, signage, working capital, and other startup costs.
Wetzel's Pretzels Unit charges a royalty fee of 7% of Adjusted Gross Revenue, except for TWISTED BY WETZEL’S Bakeries (5% of Adjusted Gross Revenue) of gross sales, plus a For TWISTED BY WETZEL’S, 1% to 5% of Adjusted Gross Revenue; For all other franchisees, 1% of Adjusted Gross Revenue contribution to the marketing/advertising fund. These fees are paid on an ongoing basis.
You can download the Wetzel's Pretzels Unit 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 Wetzel's Pretzels Unit to ensure you have the most up-to-date version.
According to the Item 19 financial performance representation in their FDD, Wetzel's Pretzels Unit franchise owners report average revenue of $872K and median revenue of $788K. This is based on a sample of 243 units. Past performance does not guarantee future results.
Wetzel's Pretzels Unit has been franchising since 1996. The FDD shows an investment range of $178,500-$689,750, a 7% of Adjusted Gross Revenue, except for TWISTED BY WETZEL’S Bakeries (5% of Adjusted Gross Revenue) royalty, and includes an Item 19 earnings disclosure. There is no pending litigation. Review the full FDD and contact current franchisees listed in Item 20 before making any investment decision.
The franchise fee is $40,000 and the total investment ranges from $178,500 to $689,750 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 Wetzel's Pretzels Unit and consult a qualified franchise attorney before making any investment decision. FranchiseOverview.com is operated by Franchising Compliance, LLC and is not affiliated with Wetzel's Pretzels Unit or any of its subsidiaries. To report an inaccuracy: info@franchiseoverview.com