Who doesn’t really love a good, old-fashioned soft pretzel every now and then? Many people across the United States love a large, soft pretzel as a snack and legend has it that the initial recipe for it came across on the Mayflower. If you have a passion for putting a smile on someone’s face because you’ve given them a great tasting product, then a franchise opportunity with this organization might just be right for you. Here’s what you need to know about this unique investment.
What Is the Initial Cost of the Investment?
If you’re looking to begin a franchise with the Philly Pretzel Factory, then the first thing you need to know is that you’ll need a minimum of $75k in cash that is ready to invest into your new franchise. The franchise fee that you’ll need to pay is $25k and you’ll need a net worth of at least $250k to qualify as a franchisee. If you can meet the financial requirements, then an extensive credit and background check will be completed. Third party financing is available in all aspects, however, once the qualification has been approved.
It’s also important to note that absentee ownership is not allowed under the current franchising model. Franchisees are expected to be directly involved in the daily operations of their business, even if multiple units are developed for the organization. You can expect a minimum total investment of $161k for each unit, with a high estimate coming in around $368k in total. In return for your investment, you’re given an exclusive territory in which to build your business while fully supported by the Philly Pretzel Factory brand.
There’s also an ongoing royalty of 6% to pay and the franchise agreement is good for a 10 year period with a renewal. This is tracked through proprietary management and marketing software that is given at the start of your franchise agreement. Locations for a new franchise are currently limited to the East Coast of the United States, but future expansion opportunities out toward the Midwest and beyond are expected in the near future.
The bottom line is that the owners of this franchise have a strategic plan in place that they attempt to follow as closely as possible. They’re looking for franchisees that will help to enhance this strategic plan and make the planned outcome a reality! If you’ve got what it takes to provide them with support in this area, then there’s a high level of support that you’ll receive from the organization in return.
What Support Do You Receive?
Philly Pretzel Factory provides a comprehensive level of support to franchisees once they come on board. It begins with the startup phase when the organization will provide guidance in all facets of getting your new business established in your community. You’ll receive a package of materials to help get your business going and guidance on how to promote your upcoming grand opening. The organization will also provide the staff you hire with training at the time of the opening for 1 week so the entire process runs smoothly.
To get to your grand opening, there is a complete training at corporate headquarters called “Pretzel University” that lasts for one week so you can get to know the expectations of the organization. There are several refreshers that are held as well and lots of hands-on training in the field that happens so that a consistent pretzel can always be delivered to a customer. There is also help with sales and marketing on an ongoing basis and you can get admin help if you need it as well.
Philly Pretzel Factory has a number of per-negotiated contracts of which franchisees can become part of to help lower overhead costs. You’ll also get regular visits from your assigned field office to track results, phone support when you need it, and monthly updates that are supplemented by system-wide meetings and conferences.
After your franchise has been approved, however, the support begins with the initial property location service that is provided by the organization. Not only will Philly Pretzel Factory help to locate the right property for your new franchise, but they’ll help with the lease negotiations as well. You’ll be given architectural services to assist with the build out that is required, including a floor plan design, and get assistance with the engineered drawings and blueprints that may be required as well.
Is This the Right Investment To Make?
If you’re looking to get involved in the high volume food industry, then the soft pretzel niche is a fairly secure place to get going. As with an investment opportunity, your due diligence that occurs before your investment will become an integral part of the process. If your community doesn’t have a soft pretzel maker in it or there isn’t one close by, then you’ve got an amazing opportunity to find a level of profitability.
With the investment levels relatively low, the risk levels are also relatively low with this franchise if you have the ability to enter your local market. Add in the various sauces and flavors that are available and you’ll have a great snack product that people are going to crave. The concept needs to be developed in each community, however, so there is a lot of promotional work that will need to be laid out as the franchise begins.
If you’re looking for an opportunity where you can invest and let your money do the talking, then the Philly Pretzel Factory isn’t the right choice for you. If you’re looking to roll up your sleeves, however, and get involved with your community in a unique way with a great-tasting product, then this could be the right place for your investment. Request your electronic brochure for more specific information through the home organization and you’ll begin your journey toward joining a team that loves to bring pretzel bliss to each community.