2026 FDD Issued Mar 27, 2026 Minnesota Commerce (CARDS) Checked Nov 2, 2026
Schlotzsky's Franchise Cost (2026)
A Schlotzsky's franchise costs an estimated $675,365 – $1,458,170 to open, according to Item 7 of the 2026 Franchise Disclosure Document (FDD). That total includes the $35,500 initial franchise fee (Item 5) and covers this format: Endcap or Inline Restaurant. Item 6 lists royalty fee: 6% of Net Sales, subject to the conditions below.
- Total investment
- $675K – $1.46MItem 7 source and qualifications
- Franchise fee
- $35.5KItem 5 source and terms
- Royalty
- 6% of Net SalesItem 6 conditions and fee bases apply
- Brand fund
- 4% of Net SalesItem 6 conditions and fee bases apply
- Units (2025)
- 294Item 20 source and scope
- Franchise exit rate
- 5.5% / yrCalculated 3-year average; definition and source
What stands out about Schlotzsky's
A new restaurant generally comes with a Cinnabon attached. Item 7 says all restaurants, with limited exceptions, must include a Cinnabon Express Bakery under a separate Cinnabon franchise agreement with its own fee and build-out. Item 6 then counts the bakery's sales toward the royalty of 6% of Net Sales owed to Schlotzsky's, on top of whatever Cinnabon charges for the same sales.
Signed deals far outnumber openings. The projected-openings table lists a long backlog of franchise agreements signed but not yet opened, while Item 20 shows 4 franchised openings in 2025 against 17 exits, mostly terminations, leaving 267 franchised restaurants. The franchisor projects more openings for the coming year than in any year the tables cover.
Fixed technology charges sit on top of the percentage fees. With the advertising contribution and a required local marketing minimum, percentage charges reach 10.5% of sales, and the monthly marketing-technology fee, point-of-sale license or lease payments and POS support bring estimated yearly fees to $129,653 – $143,453 at the Item 19 drive-thru average.
Item 19 covers only traditional restaurants that include the Cinnabon bakery and reported every week of the year, split by whether they have a drive-thru. Drive-thru restaurants averaged $1,157,190, ahead of restaurants without a drive-thru, and in each group most restaurants fell short of the group average. The figures are franchisee-reported and unaudited.
What are the initial franchise fees and financial requirements for Schlotzsky's?
Item 5 lists an initial franchise fee of $35,500 for Schlotzsky's. Check the cited Item 5 for payment timing, discounts and format-specific terms.
Item 5 (PDF pages 28-30): $35,500, paid when you sign the Franchise Agreement and not refundable. Under the VetFran program the fee is $20,000 for qualifying veterans and members of the Armed Forces, and the franchisor may reduce it case by case; in 2025 franchisees paid $10,000 to $16,320. Other pre-opening fees include up to $2,500 per extra plan review or construction inspection, the Management Training Program fee for a third or later restaurant (currently $10,000), POS payments and a $1,500 to $2,000 POS administration fee. You must spend at least $15,000 on grand opening advertising ($25,000 for the first restaurant in a market). The required Cinnabon Express Bakery carries a separate $8,000 Cinnabon initial franchise fee.
Source: Schlotzsky's 2026 FDD, Item 5, PDF p. 28.
This record lists no minimum net worth or liquid-capital requirement for Schlotzsky's, because no sourced figure has been recorded. Ask the franchisor for its current financial qualifications in writing.
How much does it cost to open a Schlotzsky's franchise? (Item 7)
Source: Schlotzsky's 2026 FDD, Item 7, PDF p. 42.
Item 7 of Schlotzsky's 2026 Franchise Disclosure Document estimates the total cost to open one endcap or inline restaurant at $675,365 – $1,458,170. This total includes the initial franchise fee.
| Expense Category | Low ($) | High ($) |
|---|---|---|
| Initial Franchise Fee | $35,500 | $35,500 |
| Construction and Build Out Costs | $305,300 | $876,200 |
| Permitting | $1,800 | $11,000 |
| Equipment Package | $133,950 | $152,600 |
| Millwork | $20,000 | $22,000 |
| Furniture | $2,850 | $6,600 |
| Menu Board, Graphics and Interior Signage | $6,840 | $7,920 |
| Exterior Signage | $15,300 | $18,550 |
| Computer System | $23,400 | $26,900 |
| Smallwares | $6,700 | $7,500 |
| TV/Music | $0 | $3,000 |
| Architect/Engineer | $5,000 | $30,000 |
| Rent | $3,300 | $15,600 |
| Grand Opening Marketing | $15,000 | $25,000 |
| Legal and Accounting Fees | $3,000 | $12,000 |
| Insurance | $1,825 | $9,100 |
| Misc. Opening Costs/Office Supplies | $500 | $5,000 |
| Security Deposits | $7,000 | $10,000 |
| Management Training Program Fee | $0 | $10,000 |
| Travel and Living Expenses during Training | $10,000 | $40,000 |
| On-Site Training Fee | $0 | $9,600 |
| Opening Inventory | $7,500 | $25,000 |
| Cinnabon Express Bakery Initial Franchise Fee | $8,000 | $8,000 |
| Cinnabon Express Bakery | $23,600 | $40,100 |
| Additional Funds - 3 Months | $39,000 | $51,000 |
| Total | $675,365 | $1,458,170 |
Other formats
| Format | Total investment |
|---|---|
| Freestanding Restaurant | $1,403,145 – $2,261,500 |
| Non-Traditional Restaurant | $668,775 – $959,255 |
For comparison, the median high-end investment among 25 restaurants & food records without a source-review hold is $1,297,100.
Item 7 (PDF pages 42-50) prints three tables, and each table's 25 lines add to its total. Table 1 is $675,365 to $1,458,170 for an endcap or inline restaurant (1,750 square feet without a drive-thru to 2,500 square feet with one). Construction is the largest line, net of an estimated $72,000 tenant improvement allowance at the low end. All restaurants, with limited exceptions such as some non-traditional sites, must include a Cinnabon Express Bakery, whose $8,000 fee and build-out come from Cinnabon's own disclosure document. Rent covers one month only. Note 19 gives the Management Training Program fee as $7,500, while Item 5 and the table use $10,000.
What ongoing royalties and fees does Schlotzsky's charge? (Item 6)
Source: Schlotzsky's 2026 FDD, Item 6, PDF p. 30.
Item 6 of Schlotzsky's 2026 FDD lists the charges below. Recurring charges and charges triggered by a transfer, renewal or other event have different conditions. Read each fee’s basis and notes before comparing rates.
How to read an Item 6 fee table.
| Fee Type | Amount / Rate | Payment Frequency | Notes & Source |
|---|---|---|---|
| Royalty Fee | 6% of Net Sales | Every period | 6% of Net Sales, paid weekly. Sales from a Cinnabon Express Bakery in the restaurant count toward Net Sales, so royalty is owed on them in addition to any royalty paid to Cinnabon. (Item 6, PDF p. 30) |
| Advertising Contribution | 4% of Net Sales | Every period | Currently 4% of Net Sales to the Ad Fund, paid weekly; the franchisor may raise it to as much as 5% by notice at any time. (Item 6, PDF p. 30) |
| Marketing Technology (Mar-Tech) Fee | $395 per month | Every period | Currently $395 per month for e-learning, e-mail marketing, loyalty, mobile apps, online and catering ordering, call centers and order management. Includes the $66 loyalty app fee and $99 online ordering fee. Increases are limited to the Allowed Adjustment (note 3). (Item 6, PDF p. 30) |
| Local Advertising Group (LAG) Contribution | Varies | When it applies | An amount set by vote of your Local Advertising Group, if one exists. (Item 6, PDF p. 31) |
| Local Marketing Obligation | 0.5% of Net Sales | Every period | Currently at least 0.5% of Net Sales each calendar quarter spent on local market advertising; may change on 60 days' notice, and the franchisor may collect it instead. (Item 6, PDF p. 31) |
| Promotions and Advertising Materials | Varies | When it applies | Up to 110% of the franchisor's or affiliates' costs for items you buy to take part in required promotions. (Item 6, PDF p. 31) |
| Insufficient Funds Fee | Varies | When it applies | Up to 110% of actual costs, including bank charges, plus interest. (Item 6, PDF p. 31) |
| Interest | Varies | When it applies | The lesser of 1.5% per month or the maximum legal rate on past-due amounts. (Item 6, PDF p. 32) |
| Late Reporting Fee | Varies | When it applies | Currently $50 per week for late or incomplete reports, statements or tax returns. (Item 6, PDF p. 32) |
| Taxes and Other Payments | Varies | When it applies | Sales, franchise, marketplace facilitator and similar taxes the franchisor pays or collects on your account, and other amounts it pays for you. (Item 6, PDF p. 32) |
| Subsequent Trainee Management Training Fee | Varies | When it applies | Currently $250 per trainee per day for managers or other designated people appointed after opening. (Item 6, PDF p. 32) |
| On-Site Training and Assistance Fee | Varies | When it applies | Currently $500 per trainer per day plus travel and living expenses for additional on-site help. (Item 6, PDF p. 32) |
| Additional Support/Consulting Fee | Varies | When it applies | Currently $500 per representative per day plus travel and living expenses, if you accept extra consulting. (Item 6, PDF p. 32) |
| Conference/Program Fee | Varies | When it applies | Currently $0 to $2,500 per attendee; may be charged for a required attendee who does not attend. (Item 6, PDF p. 33) |
| Training Cancellation Fee | Varies | When it applies | The cancelled program's fees and the franchisor's costs if you cancel less than 14 days ahead or are not prepared. (Item 6, PDF p. 33) |
| Sublease Administration Fee | Varies | When it applies | Currently $200 per month if you sublease the restaurant from the franchisor. (Item 6, PDF p. 33) |
| Lease Renewal/Extension Review Fee | Varies | When it applies | Currently $500 for a lease term of two years or less up to $2,000 for five years or more. (Item 6, PDF p. 33) |
| Lease Documentation Late Fee | Varies | When it applies | $500 per month until a signed lease or lease change is delivered, if not provided within 15 days. (Item 6, PDF p. 33) |
| Relocation Fee | Varies | When it applies | 10% of the then-current Initial Franchise Fee before relocating to an accepted site. (Item 6, PDF p. 33) |
| Relocation Extension Fee | Varies | When it applies | $1,500 per year the term is extended to match a new lease after relocation. (Item 6, PDF p. 34) |
| Refresh/Remodel Site Survey and Design Fee | Varies | When it applies | Currently $1,000 to $10,500 depending on scope. You must refresh the restaurant every five years and remodel every ten. (Item 6, PDF p. 34) |
| Transfer Fee | Varies | When it applies | 50% of the then-current Initial Franchise Fee for a Control Transfer; 10% for a transfer to a related party or one that is not a Control Transfer. (Item 6, PDF p. 34) |
| Renewal Fee | Varies | When it applies | 20% of the then-current Initial Franchise Fee before signing the renewal agreement. (Item 6, PDF p. 34) |
| Computer Systems Fee | Varies | When it applies | A reasonable fee for system modifications, upgrades and support, not more than 110% of cost. (Item 6, PDF p. 34) |
| POS System License and Lease Fees | $159 – $1,184 per month | Every period | Currently $159 to $456 per month if you buy the POS hardware (CapEx Program) or $454 to $1,184 per month if you lease it (HaaS Program, plus a 0.5% administrative fee), depending on configuration. Paid to the franchisor, which pays the vendor. (Item 6, PDF p. 34) |
| POS System Support Fee | $125 – $250 per month | Every period | Currently $125 to $250 per month for POS helpdesk, menu management, integrations and nightly sales polling. (Item 6, PDF p. 35) |
| POS System Administration Fee | Varies | When it applies | Currently $1,500 to $2,000 for POS onboarding after a transfer (and before opening; see Item 5). (Item 6, PDF p. 35) |
| Non-GoTo Foods Portfolio POS Menu Setup | Varies | When it applies | Currently $500 per day to add or change another co-brand's menu in the POS System. (Item 6, PDF p. 35) |
| Back Office and Polling Software Fee | Varies | When it applies | Not currently charged; estimated at $100 to $200 per month if required in the future. (Item 6, PDF p. 35) |
| Credit Card Fees | Varies | When it applies | Transaction fees estimated at 2.5% to 5% of transaction amounts through a processor the franchisor may designate. (Item 6, PDF p. 35) |
| Information Security and Compliance Fees | Varies | When it applies | Not currently charged by the franchisor or affiliates; any future fee is capped at 110% of cost. PCI-DSS services come from approved suppliers. (Item 6, PDF p. 35) |
| Gift Card and Loyalty Program Fees | Varies | When it applies | The gift card distributor keeps 7.75% or 12% of cards sold by outside retailers, and the designated processor currently charges $4.50 per restaurant per month. (Item 6, PDF p. 36) |
| Loyalty App Fee | Varies | When it applies | Currently $66 per month, collected as part of the Mar-Tech Fee. (Item 6, PDF p. 36) |
| Online Ordering Fee | Varies | When it applies | Currently $99 per month, collected as part of the Mar-Tech Fee, plus 0.04% per transaction and charges for added services paid directly to the vendor. (Item 6, PDF p. 36) |
| Ordering Support Fee | Varies | When it applies | Currently 3% of the pre-tax amount of each transaction processed through the online ordering system. (Item 6, PDF p. 37) |
| Technology Fee | Varies | When it applies | Not currently collected; may be set later as a percentage of Net Sales, fixed or usage fees, capped at 110% of cost. (Item 6, PDF p. 37) |
| Purchasing Program Fee | Varies | When it applies | Membership fees of any designated purchasing program; none currently requires one. (Item 6, PDF p. 38) |
| Supply Chain Fee | Varies | When it applies | Currently $0.60 to $0.90 per case, collected from certain appointed distributors. (Item 6, PDF p. 38) |
| Master Insurance Policy Fee | Varies | When it applies | Not currently charged; your share of any master insurance policy the franchisor obtains. (Item 6, PDF p. 38) |
| Insurance | Varies | When it applies | Unpaid premiums and up to 110% of costs if the franchisor obtains coverage you failed to keep. (Item 6, PDF p. 38) |
| Guest Relations Fee | Varies | When it applies | Currently $30 per guest contact not answered within 72 hours, and for the fourth and later complaints in a month. (Item 6, PDF p. 38) |
| Non-compliance Fee | Varies | When it applies | Currently $25 to $500 per violation, chargeable daily while it continues. (Item 6, PDF p. 38) |
| Failure to Comply with Standards or Law Fee | Varies | When it applies | Up to $5,000 plus inspection expenses for repeat or uncured violations. (Item 6, PDF p. 39) |
| Development Deadline Extension Fee | Varies | When it applies | $2,500 per missed site approval, construction start or opening deadline, or per extension granted. (Item 6, PDF p. 39) |
| Repeated Inspection Fee | Varies | When it applies | $500 plus third-party inspection costs for repeated non-compliance. (Item 6, PDF p. 39) |
| Reimbursement of Services After Default | Varies | When it applies | Costs the franchisor incurs performing your obligations after a default. (Item 6, PDF p. 39) |
| Audit | Varies | When it applies | Audit costs if Net Sales were understated by 2% or more; the franchisor estimates $1,000 to $4,000. (Item 6, PDF p. 39) |
| Liquidated Damages | Varies | When it applies | The average monthly Royalty Fee for the past 36 months (or since opening) times the lesser of the remaining term or 36 months, if termination occurs after opening. (Item 6, PDF p. 40) |
| Appraiser's Fee | Varies | When it applies | 50% of the appraiser's fee if the franchisor elects to buy your assets and you cannot agree on price. (Item 6, PDF p. 40) |
| Indemnification | Varies | When it applies | The franchisor's costs and losses covered by your indemnity. (Item 6, PDF p. 40) |
| Attorneys' Fees | Varies | When it applies | Attorneys' fees related to you, your owners or the restaurant, and all costs of a default termination. (Item 6, PDF p. 40) |
| Reinstatement Fee | Varies | When it applies | 10% of the then-current Initial Franchise Fee plus royalties for the gap, if reinstated after a health and safety termination. (Item 6, PDF p. 40) |
| De-identification Fee | Varies | When it applies | Actual costs plus interest and a 15% administrative fee if the franchisor de-identifies the restaurant for you. (Item 6, PDF p. 41) |
Among the published restaurants & food records with comparable flat royalties, the median is 6%; Schlotzsky's lists 6%. This is the site’s sample, not an industry-wide estimate.
Explore annual fees and payback assumptions
Start with the recorded Schlotzsky's inputs, then enter your own operating costs and sales assumptions. The result is a scenario, not an FDD profit forecast.
Schlotzsky's startup investment and modeled fees over 10 years
Over a 10-year period, startup investment plus modeled recurring fees for Schlotzsky's total approximately $1,971,895 – $2,892,700. Based on the average net sales, traditional franchises with a drive-thru disclosed in Item 19 ($1,157,190, Fiscal 2025 (ended December 28, 2025)), recurring fees come to about $129,653 – $143,453 a year:
| Expense Component | Low ($) | High ($) |
|---|---|---|
| Startup investment (Item 7) | $675,365 | $1,458,170 |
| Recurring fees × 10 years (Item 6) | $1,296,530 | $1,434,530 |
| Startup + modeled fees | $1,971,895 | $2,892,700 |
Calculated model, not a disclosed FDD total. Assumes flat sales at the disclosed figure. Excludes rent, payroll, food or product costs and taxes, which the FDD does not set. Change the assumptions in the calculator · Estimate your payback for Schlotzsky's.
Source: Schlotzsky's 2026 FDD, Item 7 (startup inputs), PDF p. 42.
Source: Schlotzsky's 2026 FDD, Item 6 (fee inputs), PDF p. 30.
Source: Schlotzsky's 2026 FDD, Item 19 (sales input), PDF p. 87.
Item 20: Schlotzsky's franchised outlet history
Source: Schlotzsky's 2026 FDD, Item 20, PDF p. 92.
Item 20 Table 3 reports 267 franchised outlets at the end of 2025. The company-owned table reports a further 27 outlets. Our calculated average annual franchised exit rate is 5.5% across the 3 reported years, using the definition below.
| Year | Franchised at Start | Opened | Reported Exits | At End | Franchise Exit Rate (%) |
|---|---|---|---|---|---|
| 2023 | 299 | 8 | 12 | 295 | 4% |
| 2024 | 295 | 4 | 19 | 280 | 6.4% |
| 2025 | 280 | 4 | 17 | 267 | 6.1% |
Franchised units went from 299 to 267 over 3 years (-32).
Reported exits include terminations, non-renewals, franchisor reacquisitions and other cessations. A reacquired outlet may continue operating. How we calculate the exit rate. How to read the Item 20 outlet tables. Compare Schlotzsky's exit rate with other brands.
12 units changed owners in 2025.
Item 20 counts both Schlotzsky's Bakery-Cafe and Cafe Xpress units. Table 3 totals (PDF page 92) match Table 1 (PDF page 89). The affiliate-owned Table 4 (PDF page 93) prints 2 restaurants reacquired in 2023, but Table 3 shows none that year and Table 4's own 2023 row adds to 22 only without them; this record uses Table 1's year-end affiliate count of 22. Table 5 (PDF page 94) lists 81 franchise agreements signed but not opened and 14 projected franchised openings for 2026.
How much do Schlotzsky's franchise owners make? (Item 19)
Source: Schlotzsky's 2026 FDD, Item 19, PDF p. 87.
Item 19 of the 2026 FDD reports average Net Sales, Traditional Franchises with a drive-thru of $1,157,190 (Fiscal 2025 (ended December 28, 2025), 201 of 203 Traditional Franchises with a drive-thru and a Cinnabon Express that reported sales in all 52 weeks; 89 (44%) attained or exceeded the average). Schlotzsky's Item 19 reports sales but no profit, costs or owner pay. Rent, payroll, supplies, loan payments and Item 6 fees such as the royalty (6% of Net Sales) come out of sales before an owner is paid, so these figures cannot show what an owner earns.
See every Schlotzsky's Item 19 figure, with its period and sample.
Estimate your payback for Schlotzsky's using Item 7 startup costs and Item 6 fee rules.
How to interpret Schlotzsky's Item 19 figures and sample limits.
How long is the Schlotzsky's franchise agreement term?
Source: Schlotzsky's 2026 FDD, Item 17, PDF p. 82.
The standard Schlotzsky's franchise agreement runs 20 years, with renewal terms of 20 years.
Item 17 (PDF page 82): a 20-year term with one 20-year renewal if you remodel, secure the site, sign the then-current agreement, pay the renewal fee and sign a general release. If you keep operating without meeting the conditions, the agreement continues month to month.
How long does it take to open a Schlotzsky's franchise? (Item 11)
Source: Schlotzsky's 2026 FDD, Item 11, PDF p. 60.
Item 11 of the 2026 FDD states the time from signing the Franchise Agreement to opening: 6 to 12 months.
Franchises with a similar investment range
These published records are selected by proximity to Schlotzsky's $675,365 low-end Item 7 investment, starting with Restaurants & Food. Formats, fees and source qualifications differ; the figures are not interchangeable budgets:
- Jeni's Splendid Ice Creams $698K – $955K Source review pending Provisional publication Restaurants & Food
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- Paris Baguette $728K – $1.86M Restaurants & Food
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- Dunkin' $532K – $1.83M Source review pending Provisional publication Restaurants & Food
- Fatburger $517K – $2.66M Source review pending Provisional publication Restaurants & Food
Compare other restaurants & food franchises
Sources
Schlotzsky's Franchisor SPV LLC Franchise Disclosure Document, issued March 27, 2026, as filed with the Minnesota Commerce (CARDS). Read the source FDD PDF. How to get this FDD yourself.
- Item 5: cited PDF p. 28
- Item 6: cited PDF p. 30
- Item 7: cited PDF p. 42
- Item 19: cited PDF p. 86
- Item 20: cited PDF p. 92
- Agreement term (Item 17): cited PDF p. 82
Page references for Schlotzsky's use the PDF viewer's digital page count, not printed page headers. Some viewers download the document instead of opening the referenced page.
If the state document viewer does not open, use Minnesota Commerce's public filing instructions to look up the filing by franchisor name and document date.
Document & verification changelog
- November 2, 2026: Source check completed against the recorded FDD.
- November 2, 2026: Initial cost profile published from the 2026 Franchise Disclosure Document (issued March 27, 2026).
- November 2, 2026: Independently checked against the March 27, 2026 Minnesota FDD: cover, Items 5, 6, 7, 11, 17, 19 and 20. The franchise fee is now the standard $35,500, with the VetFran price in notes. Item 6 now lists all 53 rows (the draft had 7); transfer and renewal fees are recorded as percentages of the then-current fee, and the POS license and support fees are added as recurring charges. Added Item 19 figures for restaurants without a drive-thru, the opening time and source notes, and disclosed a Table 4 misprint. Rewrote the analysis.