Charleys Philly Steaks is a quick service restaurant (QSR) chain specializing in Philly cheesesteak sandwiches. The menu includes a range of other options including wings, sides, and shakes, to appeal to a broad audience, but the Philly cheesesteak remains the core of the menu and the food around which the brand’s reputation has been built over nearly 40 years.
QSR is the backbone of franchising, the model for many of the most successful franchised brands and an increasingly powerful part of the US economy, as people appreciate the fast, inexpensive, and reliable food these outlets provide. It’s a model that has allowed Charleys to expand rapidly in recent years, adding around a hundred stores per year to reach nearly 900 locations in 2025. Many of these new stores come from existing franchisees reinvesting to open more locations, so this might be a good option for an entrepreneur with big ambitions who wants to build an empire within a single brand.
Charleys offers a range of different models for setting up a restaurant to suit different locations and circumstances. This includes a model for taking over dining locations that are closing down, to reduce costs on fitting out a location and get it going quickly. A franchisee with a close eye on changes in their local community could seize an opportunity to get set up faster and cheaper with a Charleys restaurant.
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Section I – Estimated initial investment (franchise costs) for a Charleys Philly Steaks franchise, based on Item 7 of the company’s 2025 FDD
Section II – Initial franchise fee, royalty fee, and marketing fee for a Charleys Philly Steaks franchise, based on Items 5 and 6 of the company’s 2025 FDD
Section III – Number of franchised and company-owned Charleys Philly Steaks outlets at the start of the year and the end of the year for 2022, 2023, and 2024, based on Item 20 of the company’s 2025 FDD
Section IV – News updates on the Charleys Philly Steaks franchise opportunity
Section V – Presentation and analysis of Charleys Philly Steaks’ financial performance representations (average revenues and/or profits), based on Item 19 of the company’s 2025 FDD, including information on the:
- 2024 average gross sales, median gross sales, and range of gross sales for the 641 franchised Charleys Philly Steaks Restaurants that were open during the entire 2024 calendar year, grouped by venue type (military bases, airport, mall food court, strip center, Walmart, and all)
Section VI – Key ratios, comparables, computations, and analyses for the Charleys Philly Steaks franchise opportunity (exclusive content for Platinum subscribers)
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When I owned a UPS Store, I learned firsthand how much your ZIP code shapes your outcome. I sold my store at a premium because my territory was in a high-value area. The best areas go first, and once they're gone, they're gone. Enter your ZIP code, and a territory specialist will walk you through the franchises still available near you, drawing on information that isn't publicly accessible — saving you months of wasted research.Section I – Charleys Philly Steaks Franchise Costs
- Charleys Philly Steaks franchise costs, based on Item 7 of the company’s 2025 FDD:
- Initial Franchise Fee: $24,500
- Leasehold Improvements: $50,000 to $329,000
- Equipment/Furniture/Fixtures: $50,931 to $145,000
- POS and Kiosk System: $13,305 to $14,749
- Signage: $5,000 to $20,000
- Architect and Engineer: $8,000 to $16,000
- Travel and Living Expenses Associated With Initial Training: $4,000 to $8,000
- Insurance: $3,500 to $10,000
- Deposits and Professional Fees: $1,000 to $7,000
- Real Estate Lease: $12,500 to $80,000
- Grand Opening Marketing Kit: $7,000 to $10,000
- Additional Funds (3-month period): $24,000 to $30,000
- Total Estimated Charleys Philly Steaks Franchise Costs: $203,736 to $694,249 (does not include real estate purchase costs)
Section II – Charleys Philly Steaks’ Initial Franchise Fee, Royalty Fee, and Marketing Fee
- Charleys Philly Steaks’ initial franchise fee, royalty fee, and marketing fee, based on Items 5 and 6 of the company’s 2025 FDD:
- Initial Franchise Fee: $15,000 to $24,500
- Royalty: the greater of (a) $300 (per week) or (b) 6% of your Gross Sales
- Advertising and Promotion Obligation: currently 3% of Gross Sales (1% to the Marketing Fund and 2% for Local Store Marketing)
Section III – Number of Franchised and Company-Owned Charleys Philly Steaks Outlets
Franchised
2022
- Outlets at the Start of the Year: 538
- Outlets at the End of the Year: 611
- Net Change: +73
2023
- Outlets at the Start of the Year: 611
- Outlets at the End of the Year: 700
- Net Change: +89
2024
- Outlets at the Start of the Year: 700
- Outlets at the End of the Year: 744
- Net Change: +44
Company-Owned
2022
- Outlets at the Start of the Year: 55
- Outlets at the End of the Year: 61
- Net Change: +6
2023
- Outlets at the Start of the Year: 61
- Outlets at the End of the Year: 61
- Net Change: 0
2024
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Every month we feature 6 standout franchises that could be the opportunity you've been looking for — each evaluated on disclosed financials and matched to the type of buyer most likely to succeed with it. You'll walk away knowing exactly how to analyze franchise fit. Join us live on September 29 at 6PM EST, or receive the recording the next day. Reserve your spot here.- Outlets at the Start of the Year: 61
- Outlets at the End of the Year: 69
- Net Change: +8
Section IV – News Updates on the Charleys Philly Steaks Franchise
Section V – Financial Performance Representations (Average Revenues and/or Profits) for the Charleys Philly Steaks Franchise (Item 19, 2025 FDD)
- There were 744 franchised Restaurants in operation as of December 31, 2024. The Statement of Average Gross Sales table below presents information about the historic annual sales of 641 franchised Restaurants that were open during the entire 2024 calendar year.
- This table excludes the performance of 65 franchised Restaurants that opened during 2024, 16 franchised Restaurants that permanently closed during 2024, and 38 franchised restaurants that were temporarily closed in 2024.
Military Bases
- Average Gross Sales: $675,748
- Median Gross Sales: $652,483
- Range of Gross Sales: $276,945 to $1,432,105
- Number of Restaurants: 65
- Number and Percent of Restaurants That Met or Exceeded Average: 28 (43.08%)
Airport
- Average Gross Sales: $1,271,657
- Median Gross Sales: $1,254,203
- Range of Gross Sales: $540,126 to $2,020,642
- Number of Restaurants: 3
- Number and Percent of Restaurants That Met or Exceeded Average: 1 (33.33%)
Mall Food Court
- Average Gross Sales: $1,027,045
- Median Gross Sales: $948,735
- Range of Gross Sales: $289,778 to $3,077,489
- Number of Restaurants: 298
- Number and Percent of Restaurants That Met or Exceeded Average: 127 (42.62%)
Strip Center
- Average Gross Sales: $914,380
- Median Gross Sales: $807,449
- Range of Gross Sales: $265,341 to $3,018,393
- Number of Restaurants: 162
- Number and Percent of Restaurants That Met or Exceeded Average: 67 (41.36%)
Walmart
- Average Gross Sales: $726,225
- Median Gross Sales: $705,235
- Range of Gross Sales: $327,226 to $1,505,269
- Number of Restaurants: 113
- Number and Percent of Restaurants That Met or Exceeded Average: 51 (45.13%)
All Restaurants
- Average Gross Sales: $911,062
- Median Gross Sales: $813,041
- Range of Gross Sales: $265,341 to $3,077,489
- Number of Restaurants: 641
- Number and Percent of Restaurants That Met or Exceeded Average: 245 (38.22%)
- The term “Gross Sales” means the aggregate amount of all sales of food, beverages, and other products sold and services rendered in connection with a Restaurant, including monies derived from sales at or away from the Restaurant, whether for cash or credit, but excluding: (1) all federal, state, or municipal sales or service taxes collected from customers and paid to the appropriate taxing authorities; and (2) all customer refunds and adjustments and promotional discounts made by the Restaurant.
- The Gross Sales of franchised Restaurants were derived from unaudited financial reports submitted by franchisees for the purpose of computing royalty fees.
- Some Restaurants have sold this much. Your individual results may differ. There is no assurance that you’ll sell as much.
- Charleys has not included the costs of sales, operating costs, or other costs and expenses for the Restaurants.
Section VI – Charleys Philly Steaks Franchise Ratios, Comparables, Computations, and Analyses (Exclusive Content for Platinum Subscribers) ⬇️
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