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How Much Is a Wetzel’s Pretzels Franchise? (Detailed Franchise Costs)

Published on January 19, 2022 by Franchise Chatter Leave a Comment
in Franchise Costs, Pretzel Franchise, Snack Franchise

Wetzel's Pretzels Photo by meganhoppock



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Wetzel’s Pretzels Franchise Costs: Estimated Initial Investment (Item 7, 2021 FDD)

  • Except for the “additional funds” category described below, this table shows expenses of a Bakery through opening day. None of the expenses shown in this table are refundable, except for insurance, utility, and security deposits, which may be partially refundable.

Wetzel’s Pretzels Bakery with Traditional Menu

1.  Initial Franchise Fee:  $10,000 to $35,000

  • If you qualify, a discount may be applied to the initial franchise fee for a single Bakery to be operated in a traditional or non-traditional location. Unless expressly stated in Item 5, no discount will be applied to the initial franchise fee. The initial franchise fee for a second or subsequent Bakery is $22,500.

2.  Lease Review Fee:  $3,000 to $6,000

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  • You must pay the franchisor a fee for the review of your lease. The fee will depend on the complexity of the lease.

3.  Business Premises:  $5,000 to $20,000

  • Figures are based on the assumption that premises will be rented and that the lessor will require an initial payment of one month’s rent and, in some cases, a security deposit of one month’s rent.
  • The premises will probably be located in a mall or shopping center; and the typical size will range from 600 to 800 square feet, with 15 to 20 linear feet of frontage. If your Bakery is larger than this, some of your costs may be higher than shown in the “High” column.

4.  Leasehold Improvements:  $55,000 to $240,000

5.  Food Preparation Equipment:  $33,000 to $58,000

  • This category includes such items as food preparation equipment and janitorial equipment.

6.  Utility Deposits, Licenses, and Permits:  $500 to $4,000

  • This category includes sales tax deposits or bonds, construction permit, sewer hookup charges, and utility deposits.

7.  Insurance:  $500 to $2,500


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8.  Signs and Menu Boards:  $4,000 to $12,000

9.  Digital Display Boards:  $5,000 to $8,500

  • You will also incur monthly fees from suppliers for ongoing software and support, currently $29 per month.

10.  Point-of-Sale Cash Register System:  $2,700 to $5,700

11.  Loyalty Program Scanner:  $400 to $800

12.  Initial Inventory and Smallwares:  $5,500 to $10,000

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13.  Training Fee for Additional Trainee:  $0 to $750

  • The fee for training the first four people is included in the initial franchise fee. An additional training fee is assessed for each additional trainee. Your Designated Manager must attend the initial training program. Attendance by others is optional.

14.  Training Expenses:  $1,000 to $2,000

15.  Grand Opening Advertising:  $500 to $2,500

16.  Office Equipment and Supplies:  $500 to $2,500

17.  Professional Fees:  $1,000 to $3,100

  • This figure includes the cost of setting up your books and attorney review of the Franchise Agreement.

18.  Architect Engineers and Construction Manager:  $5,500 to $18,000

19.  Additional Funds – First 90 Days:  $20,000 to $40,000

  • This category includes 90 days’ wages for 3 full-time and 6 part-time employees, opening cash, rent ranging from $4,000 to $8,000 per month for three months, and other miscellaneous expenses incurred during the first 90 days of the franchised business’ operations.
  • The franchisor relied on its own experience and review by its construction coordinator in estimating this figure. You should review these figures carefully in light of local conditions and the economy, consulting a business advisor if necessary.

20.  Total:  $153,100 to $471,350

Wetzel’s Pretzels Bakery with Expanded Menu

1.  Total of Bakery with Traditional Menu:  $153,100 to $471,350

2.  Additional Food Preparation Equipment:  $20,000 to $40,000

  • To offer an Expanded Menu of products, you will need to purchase additional food preparation equipment, which may include a soft serve ice cream machine and convection oven. This is in addition to the food preparation equipment shown in the table above for a Bakery with a Traditional Menu offering.

3.  Tables and Chairs:  $2,500 to $5,000

  • The premises for a Bakery with an Expanded Menu may include in-store seating and will probably be located in a retail location with street access or other non-mall location.

4.  Additional Grand Opening Advertising:  $2,500 to $7,500

  • If your Bakery offers an Expanded Menu of products, Wetzels Pretzel’s will require you to spend additional monies toward Grand Opening Advertising. This expense is not required for Bakeries offering a Traditional Menu of products.

5.  Total:  $178,100 to $523,850

Remote Mobile Unit

1.  Remote Mobile Unit Fee:  $5,000

2.  Remote Mobile Unit:  $18,000 to $55,000

  • If you and your landlord agree that you will operate a Remote Mobile Unit in the same shopping center or mall where your Bakery is located, and the franchisor grants you a license to do so, you will incur costs of between $18,000 and $55,000 for manufacture and installation of the Remote Mobile Unit and for deposits required by utilities and the landlord.

3.  Total:  $23,000 to $60,000


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