• Skip to primary navigation
  • Skip to main content
  • Skip to primary sidebar
Menu
  • Home
  • About
    • About Franchise Chatter
    • Contact
    • Privacy Policy
    • Terms of Service
    • Affiliate Disclosures
  • Subscribers Hub
    • Login
    • New to Franchise Chatter? Start Here
    • America’s Most Lucrative Franchises
    • Franchises Ranked by Average Revenues
    • Franchises Ranked by Average Profits
    • Franchise Winners, Survivors and Losers Last Year
    • FDD Talk
    • Search by Name
  • Top Franchises
  • Franchise Earnings
  • Costs
  • Fees
  • Quiz
  • Search

FDD Talk: How Much Does a Wetzel’s Pretzels Franchise Make (Average Revenues and/or Profits)?

Last updated on April 27, 2022 by Franchise Chatter Leave a Comment
in FDD Talk: Food Franchises, Franchise Earnings, Pretzel Franchise



Learn Which Franchises Can Make You Rich

In this FDD Talk post, you’ll learn the following:

  • Section I – Background information on the Wetzel’s Pretzels franchise opportunity, including relevant news updates
  • Section II – Estimated initial investment for a Wetzel’s Pretzels franchise, based on Item 7 of the company’s 2021 FDD
  • Section III – Initial franchise fee, royalty fee, marketing fee, and other fees for a Wetzel’s Pretzels franchise, based on Items 5 and 6 of the company’s 2021 FDD
  • Section IV – Number of franchised and company-owned Wetzel’s Pretzels outlets at the start of the year and the end of the year for 2018, 2019, and 2020, based on Item 20 of the company’s 2021 FDD
  • Section V – Presentation and analysis of Wetzel’s Pretzels’ financial performance representations, based on Item 19 of the company’s 2021 FDD, including information on the:
  • average, median, highest, and lowest gross sales by calendar month (from January 2020 through March 2021) for all Wetzel’s Pretzels bakeries that were open for sales during the applicable month, even if not for the full month
  • comparable sales by calendar month (from January 2020 through March 2021, versus the same month in 2019) for all Wetzel’s Pretzels bakeries that had a full month of sales in 2020/2021 as well as a full month of sales in the same month in 2019

Section I – Background Information

19 Things You Need to Know About the Wetzel’s Pretzels Franchise

Appoints New Chief Marketing Officer

1.  In early September 2021, Wetzel’s Pretzels announced the appointment of Kim Freer as its new chief marketing officer. Recognized as a proven leader in the restaurant industry, Freer brings a wealth of franchise marketing experience across a portfolio of nationally recognized brands. In her new role with the iconic pretzel brand, Freer will support its continued growth, with enhancements to its menu, ease of ordering, and digital infrastructure.


🎯Find Good Franchises That Are Still AVAILABLE in Your Target Area (Free Tool)



🚀How to Find, Vet & FUND a Good Franchise. Watch Our Webinar Live or the Recording Later (Register Now – It's Free)



💰How Much Franchise Can You AFFORD? Use Our Free Financial Calculator


2.  Freer said, “I’ve always admired Wetzel’s Pretzels for its crazy good food and distinctive voice. It’s a beloved, established brand that continues to innovate and iterate. We’re making our fresh made and fresh squeezed menu items available in a variety of flavors, and adapting our concept into various formats. Fans continue to rave about their Wetzel’s experience, so we’re on a mission to make enjoying a hot pretzel even easier and more convenient than ever before.”

3.  Freer joins an experienced leadership team at Wetzel’s Pretzels, bringing her skills in managing marketing for thousands of Subway restaurants during its height. She led brand marketing for Blaze Fast-Fire’d Pizza during a period of immense growth, from store 26 to 345, including 41 states and six countries. Most recently, she served as CMO at Yoshinoya Japanese Kitchen, where she launched off-premise sales channels, including the brand’s first mobile app and loyalty program, resulting in record sales.

4.  Jennifer Schuler, CEO of Wetzel’s Pretzels, added, “As a former Chief Marketing Officer at Wetzel’s Pretzels, this role has a special place in my heart, and I know that we can expect big things from Kim. Not only is Kim joining Wetzel’s during a time of great growth, but we’re excited to tap her experience and continue to bring pretzels to the people in inventive new ways.”

Now Offering Franchise Opportunity with Phillips 66

5.  In mid-September 2021, Wetzel’s Pretzels announced it is offering a unique franchise opportunity with the Phillips 66 family of brands. Operators now have the opportunity to open a Wetzel’s at Phillips 66, Conoco, and 76® branded convenience stores.

America's Most Lucrative Franchises of the Year

6.  Frank Gonzales, director of non-traditional development for Wetzel’s Pretzels, said, “We’ve been impressed with the early success of Wetzel’s Pretzels locations at the 76® convenience stores and the benefit this initiative will provide for both brands’ growth. Our team is excited to provide the convenience and ease of operations to even more franchise investors, and we’re determined to ‘Bring Pretzels to the People’ on a larger scale.”

7.  Radiating its signature Southern California vibe, Wetzel’s was founded in Redondo Beach, California 25 years ago. It has grown a cult-like following in the communities it serves. The brand inspires a fanatical following with its colorful presence, “gram-worthy” snacks, and the small moments of pure pretzel bliss that it creates with friends, family, and colleagues.

8.  The store-within-a-store operational model follows the recent success of Ron Reger and Alfred Daher opening three Wetzel’s locations in their 76® convenience stores within 10 months.

9.  Lou Burke, manager of branded sales at Phillips 66, said, “Phillips 66 is committed to helping owners grow. Wetzel’s has a proven franchise business model, so we recognize this opportunity as a great way to drive traffic into stores and generate additional revenue.”

Launches Unique Food Truck Partnership in Utah


🎯Find Good Franchises That Are Still AVAILABLE in Your Target Area (Free Tool)



🚀How to Find, Vet & FUND a Good Franchise. Watch Our Webinar Live or the Recording Later (Register Now – It's Free)



💰How Much Franchise Can You AFFORD? Use Our Free Financial Calculator


10.  At the end of October 2021, Wetzel’s Pretzels announced that it has teamed up with Thirst, which has inked a franchise agreement to co-brand within a newly-launched Wetzel’s Pretzels food truck. The Wetzel’s and Thirst mobile unit has quickly leveraged its local fandom, becoming a must-have at events and group gatherings.

11.  Thirst has built a loyal fan base with five Salt Lake Valley locations, and sought to bring its food and beverage snacking experience to a mobile platform. The rapidly expanding Wetzel’s food truck model fit perfectly with what Thirst founder Ethan Cisneros wanted for the next evolution of his brand. Now, Wetzel’s Pretzels powered by Thirst has hit the road and it has become a celebrated addition to the community, as can be seen on the truck’s Instagram channel.

12.  Cisneros, who co-founded Thirst with his business partner Sierra McCleve, said, “Both Thirst and Wetzel’s Pretzels set out to channel unfettered happiness – it’s a beautiful marriage of brands. Plus, when you match our sweet treats and refreshing drinks with Wetzel’s, we can satisfy just about everybody’s snack cravings with speed and convenience. And, the Wetzel’s food truck format made it a breeze to hit the road. The simplicity of operations, flexibility, lower cost and supportive team have helped our truck quickly become a prized part of events around the Valley and beyond. We’ve even gone four hours southwest of Salt Lake to St. George with it!”

13.  According to Jon Fischer, chief development officer of Wetzel’s Pretzels, “Ethan impressed us from the moment he expressed interest in launching a Wetzel’s food truck. He prioritizes exactly what our food truck owners need to in order to engrain their trucks into their communities. He’s engaging fans, eager to get out in front of local residents, events, groups and businesses, and he’s savvy, especially when it comes to social media. His ambitious nature has helped formulate a blueprint for building meaningful community ties with our food truck model. And with a strong future ahead for Wetzel’s food trucks, Ethan’s remarkably innovative use of social media to drive excitement and sales for his mobile unit will be a great source of inspiration for us.”

Company History

14.  Wetzel’s Pretzels was founded in 1994 by Rick Wetzel and Bill Phelps in the South Bay Galleria mall in Redondo Beach, California. Wetzel and Phelps’ little soft pretzel stand was a hit and they began opening more stores around the area.

15.  Building on this early success, Wetzel and Phelps begin franchising Wetzel’s Pretzels in 1996. The first standalone Wetzel’s Pretzels store opened that year and the famous Wetzel Dog, a pretzel wrapped hot dog, was added to the menu.

16.  Over the next few years, Wetzel’s Pretzels expanded rapidly around the United States and by 2001, there were over 100 locations in operation. A few years earlier, in 1998, Wetzel’s Pretzels opened its first international store in Puerto Rico. As Wetzel’s Pretzels continued to grow, the brand expanded to stadiums, airports, and theme parks like Disneyland and Disneyworld.

17.  In 2007, Los Angeles private equity firm Levine Leichtman Capital Partners Inc. bought a majority stake in Wetzel’s Pretzels. Phelps still owns a 20% share, while Wetzel holds a smaller stake. A decade later, in 2016, Levine Leichtman Capital sold its majority stake to Dallas-based private equity firm CenterOak Partners LLC.

18.  In 2019, Bill Phelps stepped down as CEO of Wetzel’s Pretzels after serving in the role for 25 years. Today, Wetzel’s Pretzels has locations in more than 28 states and six countries.

Entrepreneur’s Franchise 500

19.  Wetzel’s Pretzels did not rank on Entrepreneur’s 2022 Franchise 500 list.

Section II – Estimated Costs

  • Detailed estimates of Wetzel’s Pretzels franchise costs, based on Item 7 of the company’s 2021 FDD.

Section III – Initial Franchise Fee, Royalty Fee, Marketing Fee, and Other Fees

  • Detailed information on Wetzel’s Pretzels initial franchise fee, royalty fee, marketing fee, and other fees, based on Items 5 and 6 of the company’s 2021 FDD.

Section IV – Number of Franchised and Company-Owned Outlets

Franchised

2018

  • Outlets at the Start of the Year:  318
  • Outlets at the End of the Year:  313
  • Net Change:  -5

2019

  • Outlets at the Start of the Year:  313
  • Outlets at the End of the Year:  313
  • Net Change:  0

2020

  • Outlets at the Start of the Year:  313
  • Outlets at the End of the Year:  306
  • Net Change:  -7

Company-Owned

2018

  • Outlets at the Start of the Year:  17
  • Outlets at the End of the Year:  23
  • Net Change:  +6

2019

  • Outlets at the Start of the Year:  23
  • Outlets at the End of the Year:  26
  • Net Change:  +3

2020

  • Outlets at the Start of the Year:  26
  • Outlets at the End of the Year:  30
  • Net Change:  +4

Section V – Financial Performance Representations (Item 19, 2021 FDD) and Analysis

2020 and 2021 Adjusted Monthly Gross Revenues vs. 2019 Adjusted Monthly Gross Revenues – Impact of COVID-19 Closure Period

  • “Adjusted Gross Revenue” means the total amount of income of any type or nature generated by you and your Related Parties, directly or indirectly, from, by, or on account of the operation of the Franchised Business, including but not limited to for all goods (including gift cards) sold and services rendered from the Approved Location or in connection with the Trade Name or Marks, in whatever form and from whatever source (including revenues from special or promotional programs, delivery services and fees, other revenues associated with delivering and/or selling products or services off-premises, or any other revenue-generating activity).
  • However, the definition of Adjusted Gross Revenue does not include sales tax that is collected from customers and actually transmitted to the appropriate taxing authorities, proceeds from insurance with respect to your property damage or liability, proceeds from civil forfeiture, condemnation or seizure by governmental entities, or the amount of any returns, discounts, credits, allowances, or adjustments, within an accounting period.
  • Comp Bakeries represent any location that had a full month of sales in 2020 as well as a full month of sales in the same month in 2019.
  • Open Bakeries represent any location that was open for sales during the fiscal month, even if not for the full month.
  • During the peak of the initial COVID outbreak from March 2020 through June 2020, the vast majority of Bakeries were closed for business due to government and/or landlord mandated closures.
  • California indoor malls were forced to close a second time in mid-July, with most reopening in late August, with the exception of indoor malls in Los Angeles County, which were reopened in October.
  • While most Bakeries have re-opened as of September 2020 and comp sales of open Bakeries have recovered, some Bakeries have not yet reopened, including many Bakeries in arenas or stadiums (i.e. rely on large crowds or events).
  • The table also provides the adjusted monthly gross revenues for the first three months of fiscal year 2021 with comp sales of the same locations from 2019.

January 2020

  • 2020 Comp Sales:  $10,586,009
  • 2019 Comp Sales:  $10,003,454
  • Comp:  5.8%
  • Number of Comp Units:  275
  • Number of Open Units:  292
  • Maximum Unit Sales:  $159,181
  • Minimum Unit Sales:  $639
  • Median Unit Sales:  $36,100
  • Average Unit Sales:  $38,495

February 2020

  • 2020 Comp Sales:  $9,632,639
  • 2019 Comp Sales:  $9,477,374
  • Comp:  1.6%
  • Number of Comp Units:  273
  • Number of Open Units:  287
  • Maximum Unit Sales:  $66,665
  • Minimum Unit Sales:  $5,201
  • Median Unit Sales:  $32,117
  • Average Unit Sales:  $35,284

March 2020

  • 2020 Comp Sales:  $525,590
  • 2019 Comp Sales:  $663,628
  • Comp:  -20.8%
  • Number of Comp Units:  12
  • Number of Open Units:  284
  • Maximum Unit Sales:  $132,020
  • Minimum Unit Sales:  $12,622
  • Median Unit Sales:  $34,951
  • Average Unit Sales:  $43,799

April 2020

  • 2020 Comp Sales:  $142,423
  • 2019 Comp Sales:  $311,413
  • Comp:  -54.3%
  • Number of Comp Units:  7
  • Number of Open Units:  14
  • Maximum Unit Sales:  $44,160
  • Minimum Unit Sales:  $7,551
  • Median Unit Sales:  $20,749
  • Average Unit Sales:  $20,346

May 2020

  • 2020 Comp Sales:  $168,578
  • 2019 Comp Sales:  $293,607
  • Comp:  -42.6%
  • Number of Comp Units:  6
  • Number of Open Units:  73
  • Maximum Unit Sales:  $53,667
  • Minimum Unit Sales:  $12,489
  • Median Unit Sales:  $23,794
  • Average Unit Sales:  $28,096

June 2020

  • 2020 Comp Sales:  $2,136,041
  • 2019 Comp Sales:  $2,287,649
  • Comp:  -6.6%
  • Number of Comp Units:  44
  • Number of Open Units:  230
  • Maximum Unit Sales:  $119,838
  • Minimum Unit Sales:  $8,696
  • Median Unit Sales:  $46,912
  • Average Unit Sales:  $48,546

July 2020

  • 2020 Comp Sales:  $4,201,974
  • 2019 Comp Sales:  $5,309,040
  • Comp:  -20.9%
  • Number of Comp Units:  116
  • Number of Open Units:  251
  • Maximum Unit Sales:  $101,221
  • Minimum Unit Sales:  $11,250
  • Median Unit Sales:  $31,858
  • Average Unit Sales:  $36,224

August 2020

  • 2020 Comp Sales:  $4,528,868
  • 2019 Comp Sales:  $5,493,356
  • Comp:  -17.6%
  • Number of Comp Units:  119
  • Number of Open Units:  173
  • Maximum Unit Sales:  $110,634
  • Minimum Unit Sales:  $7,417
  • Median Unit Sales:  $32,217
  • Average Unit Sales:  $38,058

September 2020

  • 2020 Comp Sales:  $6,270,757
  • 2019 Comp Sales:  $5,792,600
  • Comp:  8.3%
  • Number of Comp Units:  132
  • Number of Open Units:  230
  • Maximum Unit Sales:  $136,199
  • Minimum Unit Sales:  $9,551
  • Median Unit Sales:  $38,204
  • Average Unit Sales:  $47,506

October 2020

  • 2020 Comp Sales:  $7,859,027
  • 2019 Comp Sales:  $7,241,921
  • Comp:  8.5%
  • Number of Comp Units:  197
  • Number of Open Units:  256
  • Maximum Unit Sales:  $111,865
  • Minimum Unit Sales:  $6,798
  • Median Unit Sales:  $35,333
  • Average Unit Sales:  $39,894

November 2020

  • 2020 Comp Sales:  $8,901,866
  • 2019 Comp Sales:  $8,546,384
  • Comp:  4.2%
  • Number of Comp Units:  210
  • Number of Open Units:  272
  • Maximum Unit Sales:  $119,130
  • Minimum Unit Sales:  $6,402
  • Median Unit Sales:  $37,466
  • Average Unit Sales:  $42,390

December 2020

  • 2020 Comp Sales:  $15,271,055
  • 2019 Comp Sales:  $17,520,735
  • Comp:  -12.8%
  • Number of Comp Units:  198
  • Number of Open Units:  275
  • Maximum Unit Sales:  $225,778
  • Minimum Unit Sales:  $7,718
  • Median Unit Sales:  $70,141
  • Average Unit Sales:  $77,127

Full Year 2020

  • Average Annual Unit Sales:  $495,765
  • Average Monthly Unit Sales:  $41,314

January 2021

  • 2021 Comp Sales:  $8,725,483
  • 2019 Comp Sales:  $7,788,708
  • Comp:  12.0%
  • Number of Comp Units:  203
  • Number of Open Units:  276
  • Maximum Unit Sales:  $132,969
  • Minimum Unit Sales:  $10,228
  • Median Unit Sales:  $39,956
  • Average Unit Sales:  $42,983

February 2021

  • 2021 Comp Sales:  $7,830,008
  • 2019 Comp Sales:  $7,344,086
  • Comp:  6.6%
  • Number of Comp Units:  190
  • Number of Open Units:  277
  • Maximum Unit Sales:  $108,122
  • Minimum Unit Sales:  $10,702
  • Median Unit Sales:  $38,940
  • Average Unit Sales:  $41,211

March 2021

  • 2021 Comp Sales:  $13,736,372
  • 2019 Comp Sales:  $11,655,847
  • Comp:  17.8%
  • Number of Comp Units:  217
  • Number of Open Units:  277
  • Maximum Unit Sales:  $189,457
  • Minimum Unit Sales:  $13,388
  • Median Unit Sales:  $58,224
  • Average Unit Sales:  $63,301

First Quarter 2021

  • Average Quarterly Unit Sales:  $147,495
  • Average Monthly Unit Sales:  $49,165

Key Franchise Ratios, Comparables, Computations, and Analyses (Exclusive Content for Platinum Subscribers) ⬇️



To Access the Rest of This Article and Other Premium, Income-Enhancing Content, Subscribe Now or Log In.

Gain the Insider Information (and Actual Earnings Data) You Need to Make a Safe and Smart Franchise Investment. Click Here to Learn More.



Gain the Insider Information (and Actual Earnings Data) You Need to Make a Safe and Smart Franchise Investment - See more at: https://www.franchisechatter.com/register/#sthash.le7wKJKM.dpuf

🎯Find Good Franchises That Are Still AVAILABLE in Your Target Area (Free Tool)



🚀How to Find, Vet & FUND a Good Franchise. Watch Our Webinar Live or the Recording Later (Register Now – It's Free)



💰How Much Franchise Can You AFFORD? Use Our Free Financial Calculator



Franchises Ranked by Average Revenues and Profits



Franchise Winners and Losers Last Year

Tagged as: Wetzel's Pretzels

Reader Interactions

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Previous post: Lesson #63: Send Us Your Franchise Recommendations and Feel the Benefits

Next post: 34 Substantial Fees Every Great American Cookies Franchisee Needs to Know About

Primary Sidebar

⚠️Buying a Franchise on Your Own Can Be Overwhelming

✅ Get the guidance and support you need every step of the way (including funding 💵) from an experienced franchise broker at no cost to you.

✅ Fill out this form and a specialist from the Franchise Brokers Association will reach out to you.

🚀How to Find, Vet and FUND a Good Franchise (Webinar)

✅ Is Franchising a Path for You? – Jun. 2 (Fri.), 11 a.m. EST

✅ Essential Services – Great for Good Times and Bad – Jun. 6 (Tues.), 4 p.m. EST

✅ Register Now to Get Free Access to Recordings of Both Webinars

Register Now

⭐️Franchise Chatter is reader-supported. We may receive a commission for leads generated from our site.

As seen in:  New York Times, Bloomberg Businessweek, and CNBC

Login

Remember Me
Register | Lost your Password?
Reminder: Your username and password are case-sensitive.

Need help? Email franchisechatterblog@gmail.com

👍”Your website and you have been instrumental in finding this franchise opportunity and I am overwhelmingly grateful.” (David F., subscriber)

🏆 Best Franchises by Industry

Best Franchises by Industry (All Lists)

Best Gym and Fitness Franchises

Best Pizza Franchises

Best Sandwich Franchises

Best Childcare Franchises

Best Ice Cream Franchises

Best Coffee Franchises

Best Hamburger Franchises

Best Salon and Beauty Franchises

Best Chicken Franchises

Best Smoothie and Juice Franchises

Best Maid Service Franchises

Best Mexican Restaurant Franchises

Best Massage Service Franchises

Best Tutoring Franchises

Best Auto Repair Franchises

Best Auto Oil Change Franchises

Best Asian Restaurant Franchises

Best Pet Franchises

Best Commercial Cleaning Franchises

Best Sports Bar Franchises

Best Baked Goods Franchises

Best Moving/Junk Removal Franchises

Best Mailbox Franchises

Best Apparel Retail Franchises

Best Senior Care Franchises

Best Restoration Franchises

Best Tech Franchises

Best Travel Agency Franchises

Best Trampoline Park Franchises

Best Tools Distribution Franchises

Best Property Management Franchises

Best Real Estate Franchises

Best Automotive Wheels and Tires Franchises

Best Weight Loss Franchises

Best Flooring Franchises

Best Eye Care Franchises

Best Physical Therapy Franchises

Best Acai Bowl Franchises

Best Poké Bowl Franchises

Best Donut Franchises

Best Kitchen and Bath Remodeling Franchises

Best Window Coverings Franchises

Best Plumbing Franchises

Best Home Inspection Franchises

Best Garage Franchises

Best Barbershop Franchises

Best Laundromat Franchises

Best Storage Unit Franchises

Best Car Wash Service Franchises

🚀 Daily FDD Talk Posts

TruBlue Total House Care Franchise

House Doctors Franchise

Rubbish Works Franchise

Mr. Rooter Franchise

Planet Smoothie Franchise

Soccer Stars Franchise

Express Employment Professionals Franchise

beem Light Sauna Franchise

The Lash Lounge Franchise

ARCpoint Labs Franchise

Hawaii Fluid Art Franchise

Snapology Franchise

Spherion Staffing Franchise

Aussie Pet Mobile Franchise

Perspire Sauna Studio Franchise

Code Ninjas Franchise

Merry Maids Franchise

Mighty Dog Roofing Franchise

Mister Sparky Franchise

City Wide Franchise

Maid Right Franchise

Benjamin Franklin Plumbing Franchise

America’s Swimming Pool Company Franchise

Gatsby Glass Franchise

ISI Elite Training Franchise

Blue Moon Estate Sales Franchise

Asurion Tech Repair & Solutions Franchise

Window Hero Franchise

Building Kidz School Franchise

Mint Condition Franchise

Caribou Coffee Franchise

Closets by Design Franchise

Fundraising University Franchise

Mr. Appliance Franchise

Strickland Brothers 10 Minute Oil Change Franchise

Showhomes Franchise

Grand Welcome Franchise

Nutty Scientists Franchise

1-800 Water Damage Franchise

Precision Door Service Franchise

TeamLogic IT Franchise

Lifetime Green Coatings Franchise

Alloy Franchise

British Swim School Franchise

Wallaby Windows Franchise

United Water Restoration Group Franchise

Hallmark Homecare Franchise

Commercial Investors Group Franchise

Sharkey’s Cuts for Kids Franchise

Techy Franchise

Franchise Chatter © 2023