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Schlotzskys Deli
 

Since 1971, Schlotzsky’s® has been the home of The Original® toasted sandwich. The menu has evolved with customers’ tastes to include the highest quality sandwiches, pizzas, salads, and soups available today. With approximately 365 locations worldwide, Schlotzsky’s is the fast-casual choice for a quick, healthful, and fresh dining experience.

Franchisor Background

Year Established:

  1971

Franchising Since:

  1977

Operating Units:

Franchised Units:343 93.7%  
Company-Owned Units:23 6.3%  
 ______ _____  
Total Operating Units:366 100%  
 

Geographic Distribution:

U.S.:343 95.3% In 35 States
Canada:0 0% In 0 Canadian Provinces
International:17 4.7% In 6 Foreign Countries
 ______ _____  
Total:360 100%  
 

North America:

States/Provinces with the largest number of operating units:
DensityUnits    

Registered in Following Registration States:

  

Financial Requirements

Investment:

Minimum Net Worth:$2.2MM (3 store minimum)
Cash Investment:$650K (3 store minimum)
Total Investment:$343.6-618.5K per store
Average Total Investment:$480K
 

Fees:

Initial Franchise Fee:$30K
Average Franchise Fee:$30K
On-Going Royalty:6%
Average Royalty:6%
Advertising Fee:4%

Average Number of Employees:

   5 Full-time, 20 Part-time

Space Needs (in square footage):

   2,800 +/-

Preferred Sites:

   Strip Center, Regional Mall

Other Sites:

   Non-Traditional Venues

Encourage Conversions?

   Yes

Earnings Claims Provided?

   Yes

Listed in the SBA Registry?

   No

Support and Training

International Franchise Association:Yes
Canadian Franchise Association:No
Franchisee Association/Member:Yes, Not a Member
Size of Corporate Staff:0
Site Selection Assistance?Yes
Lease Negotiation Assistance?Yes
Financial Assistance?No
 

Marketing Support:

Co-Op Advertising:Yes
National Advertising:Yes
Regional Advertising:No
Local Advertising:Yes
Marketing Materials:None Specified
Additional Services:None Specified
Other Marketing Support:None Specified
 

On-Going Support:

Central Data Processing:Not Applicable
Central Purchasing:Not Applicable
Field Operation Evaluation:Included in Fees
Field Training:Included in Fees
Initial Store Opening:Included in Fees
Inventory Control:Included in Fees
Franchisee Newsletter:Included in Fees
Regional or National Meetings:Included in Fees
800 Telephone Hotline:Included in Fees
 

Training:

1. Austin, TX3 Weeks
 

Franchisee Qualifications

Ranked from 1 (unimportant) to 5 (important):
 
Financial Net Worth:5
General Business Experience:5
Specific Industry Experience:4
Formal Education:3
Psychological Profile:3
Personal Interview(s):5

Minority Representation

Units Owned by Minorities:

African-American:2
Asian-American:45
Hispanic:3
Native American:N/A
Other:7
Specific Minority:Financing Referrals, Franchise Fee Deferment, Franchise Fee Reduction, Lease Negotiations, Managerial Training, Mentoring, Growth Through Diversity

Terms of Contract

Term of Initial Contract:20 Year(s)
Term of Renewal Period:10 Year(s)
Passive Ownership:Allowed, But Discouraged
Area Development Agreements?No
Sub-Franchising Contracts?No
Franchisees Allowed to Expand Within Territory?Yes

Expansion Plans

Projected New Units Over Next 12 months:

  
U.S.:Yes
Canada:No
Overseas:No
 
 
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