Start a Pretzelmaker Franchise in 2024

Franchise 500 Rank: N/R Not ranked last year

Initial investment: $303K - $583K

Units as of 2024: 199 12% over 3 years

The name says it all: Pretzelmaker makes pretzels. In 1991, the first Pretzelmaker outlet opened under the name "Pretzelvania," but this soon changed to the name we are familiar with when it started franchising in 1992. Now, locations may tempt hungry mall-goers with the promise of soft pretzels and more. A customer may find innovative snacks, a delicious menu, drinks, and dipping sauces in a snack bar setting.

Since beginning to franchise, Pretzelmaker has opened many locations in the United States, Canada, and overseas.

Why You May Want To Start a Pretzelmaker Franchise

Opening a Pretzelmaker franchise may be an opportunity for an ambitious, hard-working franchisee who has plans for the future. Whether you want to be a single or multi-unit franchisee, the ideal Pretzelmaker franchisee is willing to take a leap of faith. A potential franchisee should want to be their own boss and work hard to achieve their goals.

No specific food service qualifications are needed to open a Pretzelmaker franchise, but you may want to have an appetite for pretzels and be able to make them. Though Prezetlmaker isn't the only soft pretzel snack stand in the industry, it may have an advantage of being one of the first companies to offer soft pretzel bites. Pretzelmaker franchises are expected to bake their pretzels daily.

What Might Make a Pretzelmaker Franchise a Good Choice?

On the business end, a Pretzelmaker franchise may offer a flexible business model. This could potentially open up your franchising options. Pretzelmaker offers traditional franchises—a location in a shopping mall, for example—and non-traditional franchises that you can generally adapt to any available space, such as a kiosk-sized booth on a college campus or in an airport.

Pretzelmaker also has a new business model concept called Fresh Twist. Franchisees may find themselves drawn to this option, as it may offer new menu items in addition to the classics.

To be part of the Pretzelmaker team, you should make sure you're financially ready for an initial investment made up of a franchise fee and other startup costs. In addition, you should prepare yourself for ongoing fees that will include advertising, royalty, and potential renewal fees. Franchisees will also need to meet the company's set net worth and liquid capital requirements.

How To Open a Pretzelmaker Franchise

Choosing a good location may be a key to success with a Pretzelmaker franchise. You typically want to find a place with a constant stream of foot traffic. You should choose a spot with constant movement. That said, as you conduct your due diligence, research the brand and your local market.

Consider speaking to existing franchisees and asking the Pretzelmaker franchising team questions. For example, how does the brand hold up against other direct competitors like Wetzel's Pretzels and Auntie Anne's? Are you at liberty to give away samples of products or run your own promotions?

Should Pretzelmaker award you a franchise, you will most likely undergo corporate training. The process should prepare you well for the gift of pretzels you're about to give your community!

Company Overview

About Pretzelmaker

Industry	Food
Related Categories	Pretzels, Baked Goods, Miscellaneous Baked Goods, Desserts
Founded	1991
Parent Company	FAT Brands Inc.
Leadership	Taylor Wiederhorn, Chief Development Officer
Corporate Address	9720 Wilshire Blvd., #500 Beverly Hills, CA 90212
Social	Facebook, Twitter, Instagram, TikTok

Business Overview

Franchising Since	1992 (32 years)
# of employees at HQ	335
Where seeking	This company is offering new franchises throughout the US. This company is offering new franchises worldwide.
# of Units	199 (as of 2024)

Information for Franchisees

Here's what you need to know if you're interested in opening a Pretzelmaker 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.	$25,000
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.	$302,500 - $583,000
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.	$1,500,000
Cash Requirement Definition: The minimum liquid capital you must have available in order to qualify to become a franchisee of this company.	$500,000
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.	7%
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.	15 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	Pretzelmaker has relationships with third-party sources which offer financing to cover the following: 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	23.5 hours
Classroom Training	0.75 hours
Ongoing Support	Purchasing Co-ops Newsletter Meetings & Conventions Grand Opening Online Support Security & Safety Procedures Field Operations Site Selection Proprietary Software Franchisee Intranet Platform
Marketing Support	Ad Templates National Media Regional Advertising Social Media 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