America's #1 Franchise Directory, Trusted for Over 15 Years

Pretzelmaker Franchise Cost & Fees

Date of Incorporation: 1991
Franchising Since: 1992
Headquarters: Atlanta, Georgia

Business Description: PM Franchising, LLC, the franchisor, offers franchises for the operation of Pretzelmaker stores that offer soft pretzels, pretzel toppings, beverages and other food products under the Pretzelmaker mark.

Franchise Offer: The franchisor offers the opportunity to become a franchisee to develop and operate Stores which specialize in selling hand-rolled soft pretzels of various flavors, frozen pretzels, pretzel dogs, pretzel bites, and other pretzel-related products and toppings, and related food items and beverages. The franchisor offers 2 types of Stores: (a) Traditional Stores; and (b) Non-Traditional Stores. In addition, if franchisees own and operate a Store, in certain circumstances the franchisor will offer the right to offer and sell products at a separate location that it approves (Satellites).

Financial Assistance: Neither the franchisor nor any agent or affiliate offers direct or indirect financing to franchisees, guarantees any note, lease or obligation of franchisees, or has any practice or intent to sell, assign or discount to a third party all or any part of any financing arrangement of franchisees.

Training and Assistance: The franchisor will provide initial training in the System and its policies and procedures to franchisees (or their Operating Principal, if franchisees are an Entity), their initial manager of the Store (the Manager), and any other employees that the franchisor designates. The franchisor provides initial training as frequently as it deems necessary at its offices, currently in Atlanta, Georgia, or at any other location that it designates, including other Stores or the franchisee’s Store. Franchisees must attend 3 days of on-the-job training at a designated training location for purposes of practical application of skills taught during classroom training. Franchisees also must attend 5 additional days of training at the franchisor’s offices. The franchisor may periodically conduct advanced training programs for franchisees, their Operating Principal, their Managers, and/or their employees at its office or another location that it designates.

Territory: Franchisees will not receive an exclusive territory. Franchisees may face competition from other franchisees, from outlets that the franchisor owns, or from other channels of distribution or competitive brands that the franchisor controls. The franchise is for the specific site that the franchisor approves. Franchisees must locate an acceptable site within the non-exclusive Site Selection Area that the franchisor specifies.

Term of Agreement and Renewal: The length of the initial franchise term is 10 years. One additional 10 year term is available, if franchisees meet the conditions.

Obligations and Restrictions: Franchisees must devote their full-time, best efforts to the proper and effective operation of the Store. In addition, the Store must have at least one Manager. If franchisees are an individual, they may serve as the Manager or they may designate a Manager. If franchisees are an Entity, they must designate a Manager and they must appoint an individual owner as the “Operating Principal” who must have authority over all business decisions related to the Store and must have the power to bind the franchisee in all dealings with the franchisor. Franchisees may offer for sale in the Store only the products and services that the franchisor has approved in writing. Franchisees must offer all items that we designate as mandatory.

Estimated Number of Units: 285

Investment Tables:
Initial Investment for a Single Store
Name of Fee Low High
Initial Franchise Fee $15,000 $15,000
Grand Opening Marketing $3,000 $5,000
Travel and Living Expenses While Training $2,000 $4,000
Dough Ingredients $1,000 $5,000
Other Opening Inventory $500 $1,000
Architectural Fees $4,000 $7,500
Furniture, Fixtures, Equipment and Décor $60,000 $85,000
Signs $4,500 $7,500
Prepaid Rent and Security Deposit $2,500 $5,000
Leasehold Improvements $95,000 $150,000
Utility Deposits $2,200 $3,000
Professional Fees $1,000 $6,000
Computer System $2,500 $5,000
Business Licenses, Permits, etc. (for first 6 months) $1,500 $2,500
Insurance (3 months) $2,000 $3,500
Additional Funds (3 months) $8,000 $12,000
ESTIMATED TOTAL $205,200 $332,000
Initial Investment for a Satellite
Name of Fee Low High
Initial Franchise Fee $5,000 $5,000
Kiosk Structure $20,000 $45,000
Grand Opening Marketing $1,000 $3,333
Travel and Living Expenses While Training $1,000 $5,000
Pretzel Ingredients $5,000 $10,000
Other Opening Inventory $5,700 $10,150
Architectural Fees $4,000 $7,000
Furniture, Fixtures, Equipment and Décor $20,000 $40,000
Smallwares $500 $2,500
Prepaid Rent and Security Deposit $2,500 $5,000
Utility Deposits $1,200 $1,636
Utility Work $7,000 $15,000
Professional Fees $1,000 $6,000
Computer System $2,500 $5,000
Business Licenses, Permits, etc. (for first 6 months) $1,000 $1,675
Insurance (3 months) $1,500 $2,100
Additional Funds (3 months) $1,000 $5,000
ESTIMATED TOTAL $79,900 $169,394
Other Fees
Type of Fee Amount
Royalty Fee 7% of Net Sales for the preceding week.
Marketing Fee 1.5% of your Net Sales for the preceding week.
Continuing Inventory Cost plus a reasonable mark-up.
ACH and Check NSF Fee The franchisor’s out-of-pocket costs and an administrative fee (currently $30 to $50).
Interest 18% per year (or maximum legal rate, if less).
Late Fee $25 per week.
Additional Training Currently, $300 per employee or agent for each full or partial day.
Additional Consulting Services Currently, $300 per employee or agent for each full or partial day, plus their travel and living expenses.
Assigned Trainers The franchisors actual costs and expenses, including travel and living expenses for trainers.
Product, Service, Supplier, and Service Provider Review The franchisor’s reasonable cost of inspecting the supplier, testing the proposed product, or evaluating the service provider or proposed service, including personnel and travel costs; this cost will not exceed $5,000
Relocation Charge $2,000
Transfer Fee $10,000 for a transfer of the Store or Franchise Agreement.
Transfer Referral Fee $15,000
Successor Fee (Renewal) for Traditional Store and Co-Brand Store 20% of the then-current Franchise Fee.
Successor Fee (Renewal) for Satellite Store $2,500
Insurance Cost of the premium (usually $2,500 to $5,000) plus a reasonable fee ($50 per hour) for our services in procuring the insurance.
Audit Cost of audit, including travel and living expenses, plus interest on the amount of the under-payment at an annual rate of the lesser of 18% or the maximum interest rate permitted by law.
Inspection The franchisor’s reasonable expenses incurred in inspecting the franchisee’s business, including travel and living expenses, wages, and other expenses for the franchisor’s employees; this cost will not exceed $5,000
Convention or Meeting Attendance As the franchisor determines based on its costs of holding the convention or meeting.
Remedial Expenses The franchisor’s reasonable expenses incurred in correcting the franchisee’s operational deficiencies; this cost will not exceed $10,000 per deficiency.
Enforcement Expenses The franchisor’s reasonable cost of de-identifying the Store; this cost will not exceed $10,000
Indemnification The franchisor’s liabilities, fines, losses, damages, costs, and expenses (including reasonable attorneys’ fees).
Liquidated Damages Liquidated damages are calculated as (i) the average of the franchisee’s monthly Royalty Fees and Marketing Fees due for the 12 months before the franchisor’s delivery of the notice of default or termination of the Franchise Agreement (or for any shorter time that the Store has been open), (ii) multiplied by the lesser of 36 or the number of months remaining in the then-current term of the Franchise Agreement, (iii) discounted to present value using the then-current prime rate of interest quoted by our principal commercial bank.
Test Products $50 - $500

The above information has been taken from the FDD of Pretzelmaker. Year of FDD: 2016

Franchise Direct's Disclaimer


Sign up to our newsletter and be notified about other franchise opportunities

Your E-mail Address

Confirm E-mail Address

 

You may be interested in the following franchises...

Sertinos Café Sertinos Café - get a taste of what we're all about! It all starts with great food. Request Info Min. Cash Required:
$100,000.

Nestlé® Toll House® Café Nestlé® Toll House® Café has built on the world's most powerful food name, Nestle®, to become North America's Very... Request Info Min. Cash Required:
$100,000.

Your Request List

You can add items by clicking the "Add to Request List" button or checkbox when you find something you're interested in.

You may add up to 15 items to your Request List

Your request list will follow you around the site.

When you are ready to complete your request for free information, click "Submit" in your Request List.

Why not get started by browsing our New Franchise Opportunities or Low Cost Franchise Directory?

You may only enter 15 items in your Request List.

To request information from your selected companies, just fill in the form and click "Submit".

OK, got it

Request Info From:

  •  

Your List is Empty

You can add items by checking the "Request FREE Info" boxes.

* indicates required field

Optional Information

Join our mailing list!

We share your information only with your selected franchises.