Charleys Philly Steaks Franchise Costs, Fees & FDD

Year Business Began: 1986

Franchising Since: 1991

Headquarters: Columbus, Ohio

Estimated Number of Units: 815

Franchise Description: Gosh Enterprises, Inc. is the franchisor. The franchisor offers franchises for quick service restaurants operating under the “Charleys” name and mark that feature Philadelphia-style cheese steaks, buffalo style chicken wings, and several other varieties of grilled subs, french fries, lemonade and soft drinks. Charleys restaurants operating in mall food courts, airports, military bases and inline locations are referred to as “CPS Restaurants” and restaurants operating in inline and freestanding locations that additionally offer chicken wings and other chicken-based menu items are referred to as “CPSW Restaurants.” CPSW restaurants located within a Walmart store are referred to as a “Walmart Location.”
Training Overview: The initial training program lasts three weeks. Training takes place in Columbus, Ohio at such time(s) as the franchisor designates. The initial training program consists of 150 total hours of instruction. At least two people including franchisees (or their operating partner) must complete the initial training program to the franchisor’s satisfaction or it may terminate the Franchise Agreement. The franchisor may require franchisees (or their operating partner) and their employees to attend and successfully complete other training courses, quality assurance programs, conferences (including annual conferences) and seminars at such locations as it may designate. Franchisees must establish at the restaurant an employee training program meeting the franchisor’s standards.

Territory Granted: The Franchise Agreement grants franchisees the right to own and operate a Charleys restaurant at a specific location. Franchisees will not receive an exclusive territory. Franchisees may face competition from other franchisees, from restaurants that the franchisor owns or from other channels of distribution or competitive brands that the franchisor controls.

Obligations and Restrictions: If franchisees are, or at any time become, a business corporation, partnership, limited liability company or other legal entity, they must designate an “operating partner,” an individual approved by the franchisor who must meet certain requirements. Franchisees (or their operating partner): (1) shall exert their full-time and best efforts to the development and operation of the restaurant and all other Charleys restaurants they own; and (2) may not engage in any other business or activity, directly or indirectly, that requires substantial management responsibility or time commitments or otherwise may conflict with their obligations under the Franchise Agreement. The franchisor requires franchisees to sell all food, beverage and other products and services that it determines from time to time to be appropriate for the restaurant. The restaurant will not be permitted to offer any products or services (including promotional items) not authorized by the franchisor for Charleys restaurants without the franchisor’s prior written approval.

Term of Agreement and Renewal: The length of the initial franchise term is 10 years; however, if the franchisee’s lease or other agreement for the restaurant has a shorter term, the franchisor may reduce the term of the Franchise Agreement to coincide with that term. Franchisees may renew the franchise under the terms of the then current form of Franchise Agreement, if requirements are met.

Financial Assistance: The franchisor does not offer any direct or indirect financing. The franchisor does not guarantee a franchisee’s note, lease or obligation. CPS Sites, a franchisor affiliate, has entered in to a master sublease agreement with Concept Development Solutions, LLC (the sublandlord) for the operation of Charleys restaurants in Walmart locations. If franchisees are approved to operate their restaurant in a Walmart location and execute a “Letter of Acceptance,” the master landlord and sublandlord will execute an attachment to the Franchise Agreement for the premises that will be incorporated into the Master Lease. Under the VetFran Program, if franchisees (or a holder of at least a 51% ownership interest in the franchisee entity) provide adequate documentation, as determined by the franchisor, demonstrating honorable discharge from the United States military, then the franchisor will reduce the franchise fee by $12,250.

Estimated Initial Investment

Name of Fee	Low	High
Initial Franchise Fee	$24,500	$24,500
Leasehold Improvements	$50,000	$485,000
Equipment/Furniture/Fixtures	$50,931	$195,000
In-Restaurant Music/Media System	$0	$1,200
POS and Kiosk System	$13,305	$28,032
Signage	$5,000	$65,000
Architect & Engineer	$8,000	$30,000
Travel and Living Expenses Associated with Initial Training	$4,000	$8,000
Insurance	$3,500	$10,000
Deposits and Professional Fees	$1,000	$8,000
Real Estate Lease	$12,500	$80,000
Grand Opening Marketing Package	$7,000	$10,000
Additional Funds (3 month period)	$24,000	$40,000
ESTIMATED TOTAL (does not include real estate purchase costs, if applicable)	$203,736	$984,732

 
Other Fees

Type of Fee	Amount
Royalty	The greater of (a) $300 or (b) 6% of gross sales.
Advertising and Promotion Obligation (APO)	CPSW Walmart locations and CPS restaurants APO: currently 3% of gross sales (1% to the marketing fund and 2% for local store marketing (LSM). CPSW restaurants that are not operated in Walmart locations APO: currently 4% of gross sales (1% to the marketing fund and 3% for LSM).
Marketing, Advertising and Promotional Materials	$1,000 - $4,000
Rent for Walmart Locations	10% of weekly gross sales with a minimum of $250/week.
Technology Fee for Walmart Locations	$6.50/month.
Internet Service Access Charge for Walmart Locations	$150/month; if applicable.
Digital Menu Board Support Fee for Walmart Locations	$27.50/week.
Price Change Fees	$200 per occurrence.
Transfer Fee	The greater of $10,000 or the franchisor’s costs incurred in connection with the transfer.
Renewal Fee	Currently, $10,000.
Failed Inspection or Non-Compliance Fees	$500 - $1,500
Ongoing Training	Currently, $1,500 - $3,500 per program.
Late Charge and Interest on Late Payments	The late charge is currently $50; the interest charge is the lesser of 12% per annum, or the maximum rate permitted by law.
Service Payments	Currently $50.
Special Assistance	The franchisor’s out-of-pocket expenses.
Fees to Evaluate and Approve Alternative Suppliers	The franchisor’s out-of-pocket expenses (estimated at $1,500 to $2,000).
Audit	Cost of audit.
Insurance	Will vary under circumstances.
Maintenance Costs	Will vary under circumstances.
Attorneys’ Fees and Other Costs; Collection Costs and Expenses	Will vary under circumstances.
Marketing, Advertising, Operating and QA program	Currently, $500 - $1,000 for a negative review QA program; The franchisor does not currently charge a fee for other programs.
Indemnification	Will vary under circumstances.
Liquidated Damages	Three times the amount of royalties owed for the one year period prior to termination.

The above information has been compiled from the FDD of Charleys Philly Steaks. Year of FDD: 2025.
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