Start a Schlotzsky's Franchise in 2025

Company Overview

About Schlotzsky's

Industry	Food
Related Categories	Miscellaneous Sandwiches, Sandwiches
Founded	1971
Parent Company	GoTo Foods
Leadership	Donna Spangler-Josephson, Chief Brand Officer
Corporate Address	5620 Glenridge Dr. N.E. Atlanta, GA 30342
Social	Facebook, Twitter, LinkedIn, Instagram, TikTok

Business Overview

Franchising Since	1976 (49 years)
# of employees at HQ	119
Where seeking	This company is offering new franchises throughout the US.
# of Units	312 (as of 2024)

Information for Franchisees

Here's what you need to know if you're interested in opening a Schlotzsky's franchise.

Financial Requirements & Ongoing Fees

Here's what you can expect to spend to start the business and what ongoing fees the franchisor charges throughout the life of the business.

Initial Franchise Fee Definition: The initial fee paid to a franchisor to join their system What you need to know: Found in Item 5 of the FDD, this may be a flat fee, or may vary based on territory size, experience, or other factors.The franchise fee is an up-front (one-time) cost that a new franchisee pays to the franchisor. This fee is usually due at the signing of the franchise agreement and covers the right to use the franchisor's trademarks, name, and related business systems.	$35,500
Initial Investment Definition: The total amount necessary to begin operation of the franchise What you need to know: The initial investment includes the franchise fee, along with other startup expenses such as real estate, equipment, supplies, business licenses, and working capital. This is outlined in a chart in Item 7 of the FDD, showing a range of possible costs from low to high.	$634,165 - $1,904,550
Net Worth Requirement Definition: The minimum net worth you must have in order to qualify to become a franchisee of this company What you need to know: Net worth is the value of a person's assets minus liabilities. Assets include cash, stocks, retirement accounts, and real estate. Liabilities include items like mortgages, car payments, and credit card debt.	$1,000,000
Cash Requirement Definition: The minimum liquid capital you must have available in order to qualify to become a franchisee of this company.	$300,000
Veteran Incentives Definition: A discount or other incentive offered to military veterans who buy a franchise with this company.	$20,000 off franchise fee
Royalty Fee Definition: A ongoing fee paid to the franchisor on a regular basis. What you need to know: Most franchisors require franchisees to pay an ongoing royalty fee, which is detailed in Item 6 of the FDD. This fee is typically a percentage of weekly or monthly gross sales, but may also be a flat weekly, monthly, or annual fee.	6%
Ad Royalty Fee Definition: An going fee paid to the franchisor on a regular basis to support advertising or marketing efforts. What you need to know: This may also be called advertising fee, marketing fee, brand fund fee, and more, but the basic purpose is the same-- to support promotion of the brand systemwide. As with the royalty fee, it is detailed in Item 6 of the FDD, and can be a percentage of weekly or monthly gross sales or a weekly, monthly, or annual fee.	4%
Term of Agreement Definition: The length of time your franchise agreement will last. What you need to know: Franchise terms are typically anywhere from 5 to 20 years in length, but are sometimes instead dependent on factors such as the term of your lease. Once your term is up, you may have the option to renew your agreement, typically for a smaller fee than the original franchise fee.	20 years
Is franchise term renewable?	Yes

Financing Options

Some franchisors offer in-house financing, while others have relationships with third-party financing sources to which they refer qualified franchisees.

Third Party Financing	Schlotzsky's has relationships with third-party sources which offer financing to cover the following: franchise fee, startup costs, equipment, inventory, accounts receivable, payroll

Training & Support Offered

Franchisors offer initial training programs and a variety of ongoing support options to help franchisees run their businesses.

On-The-Job Training	36-200 hours
Classroom Training	18-50 hours
Ongoing Support	Newsletter Meetings & Conventions Toll-Free Line Grand Opening Online Support Security & Safety Procedures Lease Negotiation Field Operations Site Selection Proprietary Software Franchisee Intranet Platform
Marketing Support	Co-op Advertising Ad Templates National Media Regional Advertising Social Media SEO Website Development Email Marketing Loyalty Program/App

Operations

Additional details about running this franchise.

Is absentee ownership allowed?	No
Can this franchise be run from home/mobile unit? Definition: The business can be run from your home and/or a vehicle, and it is not necessary to have a retail facility, office space, or warehouse.	No
Can this franchise be run part time? Definition: This business can be run by the owner on a part-time basis (less than 40 hours per week) and/or as a side business; it is not necessary for the business to be open/run full-time.	No
Are exclusive territories available? Definition: An exclusive territory is a fixed area in which you are given the right to operate and in which no other units of the same franchise may be opened. What you need to know: Territory size may be based on factors such as radius, population size, zip codes, and more. Details can be found in Item 12 of the FDD.	Yes

Franchise 500 Ranking History

Compare where Schlotzsky's landed on this year's Franchise 500 Ranking versus previous years.

Additional Rankings

Curious to know where Schlotzsky's ranked on other franchise lists? Find out below.

Ranked #185 in 2025

Franchise 500

Ranked #57 in Miscellaneous Sandwiches in 2025

Top Food Franchises

Ranked #111 in 2024

Top Brands for Multi-Unit Owners

More from Schlotzsky's

Home of The Original® Oven-Baked Sandwich.

’Our food is unique. Our customers are loyal. We offer something that they can’t get anywhere else. We are fast, convenient, and consistent. Our sandwich bread and pizza crust is baked fresh-from-scratch each morning. And with life’s current demands, where else can you get a whole pizza at the drive-thru, in less than 4 minutes?’ --Viral Patel, Franchise Owner with 23 Locations

People have been craving Schlotzsky's® since we first opened our doors on South Congress Avenue in Austin, Texas, in 1971. Back then, there was only one sandwich on the menu, The Original®, and that sandwich made us famous. These days, our loyal fans aren't the only ones raving about us. The restaurant industry has been giving us love, too. Now, we're ready to impress a whole new generation of diners by adding bold, new menu items and a cool new look. Add to that our passionate franchise owners who aren’t afraid to be a little bit different, and you’ve got a winner—you’ve got Schlotzsky’s

Your Schlotzsky's® can fulfill fans' desires for delicious food nearly anywhere thanks to our flexible footprints, including freestanding drive-thrus, end cap drive-thrus, in-line and non-traditional restaurants. We even have cobranding opportunities with our sister brands like Cinnabon®. It's just one more way Schlotzsky's® stands out from the crowd.

Culinary Innovation
From state-of-the-art test kitchens to a broad base of food science expertise, we're perfectly positioned to lead the future of food.
Well-Known Name
They may not be able to spell it, but your fans will never be able to forget our well-crafted brand.
Support Provided by Industry Leaders
GoTo Foods™ brings big-name support to your franchise as a leading developer of iconic, global foodservice brands.
In-House Marketing
National, local and seasonal marketing campaigns are designed by our in-house experts to drive traffic to your franchise locations.
Strategic Supply Chain
Leveraged spend management across GoTo Foods™ portfolio.
Robust Digital Platform
Through intelligence gathering and benchmarking, you'll be more connected to your customers and better able to meet their needs.

Disclaimer

The information on this page is not intended as an endorsement or recommendation of any particular franchise or business opportunity by Entrepreneur Media. Our listings and rankings are solely research tools you can use to compare opportunities. Entrepreneur stresses that you should always conduct your own independent investigation before investing in a franchise or business opportunity. That should include reviewing the company's legal documents, consulting with an attorney and an accountant, and talking to former and current franchisees/licensees/dealers.

Updated: December 12th, 2022

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