Soft Pretzel Franchise Investment | Pretzelmaker Franchise

The Investment: FAQs about the Pretzelmaker Numbers

Choosing a franchise is an exciting investment. Not only do you get to enjoy being independent as a business owner, but you are also embarking on the fun yet challenging journey of opening and operating a pretzel franchise.

The Pretzelmaker investment is a perfect fit for smart, hardworking, business-minded people who are tired of working for someone else. But before you invest, it is important to know where your hard-earned money is going and how the investment will affect you going forward.

Here are some of the questions we get asked about the total startup costs that come with opening a Pretzelmaker store. Use this information to get some of your questions answered, and get in touch with us if you have any more.


How Much Are Pretzelmaker’s Ownership Fees?

When you are getting ready to own a Pretzelmaker, it is important to consider the franchise fees.

The Pretzelmaker franchise ownership fee is 7% of net sales and a 1.5% of net sales marketing fee for the term of your franchise agreement.

What Do the Fees Get Me?

The reason that franchising is so much more appealing than independent business ownership is that a franchise has a system that works. More importantly, it has been proven to work across different locations, owners, and markets.

When you invest in Pretzelmaker, not only do you get our brand’s huge network, but you also get the expertise of our brand management company, Global Franchise Group (GFG). Your franchise fees and royalties get you all the help of our expert tools to help you build your business and run it smoothly.

Here are some of the resources that come from your association with Pretzelmaker:

    • Access to marketing support
    • Research and Development Grand opening support
    • Support from corporate teams and other franchise owners
    • Access to preferred vendors
    • Brand recognition

Are You a Good Financial Candidate for Franchise Ownership?

Investing in a franchise is a major investment, so it is important that our franchise owners are financially prepared to go forward and thrive with their businesses. We look for franchisees with a minimum net worth of $250,000 and a minimum of $100,000 in liquid assets.

What Items Make Up the Total Investment?

The biggest question is, “What are the total startup costs for the investment?” To understand the scope of your investment, you need to know where your money is going, which is why we have put together this handy chart to show exactly where your investment may go and some low-to-high ranges for each expense.

Use this chart to get an idea of what opening a Pretzelmaker might cost and prepare for your investment.

Take a look at the numbers for a traditional or non-traditional store.*

Type of Expenditure

Amount

Method of Payment

When It Is Due

To Whom the Payment Is Made

Franchise Fee

$25,000

Lump Sum

At signing of franchise agreement

Pretzelmaker

Grand Opening Marketing

$3,000-$5,000

As Incurred

As Incurred

Third-Party Suppliers or Pretzelmaker

Travel and Living Expenses While Training

$2,000-$4,000

As Incurred

As Incurred

Airlines, Hotels, and Restaurants

Dough Ingredients

$1,000-$5,000

Lump Sum

Before Opening

Pretzelmaker’s Affiliate

Other Opening Inventory

$500-$1,000

Lump Sum

Before Opening

Other Suppliers

Architectural Fees

$4,000-$7,500

As Incurred

As Incurred

Architects

Furniture, Fixtures, Equipment, and Décor

$60,000-$85,000

As Incurred

As Incurred

Third Parties

Signs

$4,500-$7,500

As Incurred

As Incurred

Third Parties

Prepaid Rent and Security Deposit

$2,500-$7,500

As Incurred

As Incurred

Landlord

Leasehold Improvements

$95,000-$150,000

As Incurred

As Incurred

Various Contractors / Suppliers

Utility Deposits

$2,200-$3,000

As Incurred

As Incurred

Utility Companies

Professional Fees

$1,000-$6,000

As Incurred

As Incurred

Your Attorneys, Accountants, and Business Advisors

Computer System

$2,500-$5,000

As Incurred

As Incurred

Suppliers

Business Licenses, Permits, etc. (first six months)

$1,500-$2,500

As Incurred

As Incurred

Government Agencies

Insurance (three months)

$2,500-$3,500

As Incurred

As Incurred

Insurance Companies

Additional Funds (three months)

$8,000-$12,000

As Incurred

As Incurred

Employees, Suppliers, Utilities, etc

TOTALS

$205,200-$327,000

*This information is not intended as an offer to sell, or the solicitation of an offer to buy, a franchise. An offer can be made by prospectus only. The table above includes information regarding a franchisee’s estimated initial investment for traditional locations from Item 7 of Pretzelmaker’s 2018 Franchise Disclosure Document (“FDD”). More information, including explanatory footnotes that supplement the table above, can be found in Item 7 of the FDD.


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SUCCESS STORIES

I love this business. One of the reasons my wife and I chose this business is because of the simplicity of the product. It’s a very simple business model. A very simple business.

Rajat Ghosh

Contact us today to learn more!

877.639.6321


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