Charleys

Charleys

Information based on 2024 FDD

Food & Beverage · Fast Food

Investment min
$202K
Total: $202K–$669K
Avg gross revenue
$942K
Unit-level, 2024
Franchise fee
$25K
Per current disclosure
Royalty
6%
of gross revenue
Locations
700
Franchising since 1991

Description

What is Charleys?

Charleys, established in 1986, has grown into one of America's beloved fast-food franchises, specializing in made-to-order Philly cheesesteaks, gourmet fries, and signature lemonades. What began as a single location has evolved into a nationwide sensation, known for delivering an exceptional quick-service dining experience that combines quality ingredients with outstanding customer service.

At the heart of Charleys' success is their commitment to fresh, high-quality ingredients and made-to-order preparation. Their signature Philly cheesesteaks feature premium graded beef, fresh-baked rolls, and real cheese, all grilled to perfection right in front of customers. The menu extends beyond traditional cheesesteaks to include innovative variations like buffalo chicken and teriyaki options, appealing to diverse taste preferences.

The brand distinguishes itself through its dedication to customer experience, with consistently positive reviews highlighting friendly staff, cleanliness, and efficient service. Their loaded fries, featuring various creative toppings, have become a customer favorite, while their fresh-made fruit lemonades offer a refreshing complement to any meal.

Charleys' business model emphasizes operational excellence, quality control, and customer satisfaction. The franchise provides comprehensive training and support systems, enabling franchisees to maintain consistent food quality and service standards across all locations. Their successful track record and growing presence in shopping malls, standalone locations, and other retail environments demonstrate the concept's versatility and appeal to diverse markets.
  • 38 years proven franchise experience
  • 761 locations nationwide market presence
  • Signature Philly cheesesteak menu differentiation
  • Lower investment barrier entry point
  • Streamlined counter-service operational model
  • Established supply chain infrastructure

Location Analysis

Where Charleys wins

Founded in 1986, Charleys has grown to numerous locations across multiple states and has established an international presence, as evidenced by locations like their highly-rated Muscat City Center outlet (4.8 rating). The franchise shows strong concentration in the Mid-Atlantic and Southeast regions, with notable presence in Virginia, Florida, Texas, and significant market penetration in California and Maryland.

The franchise maintains positive customer satisfaction ratings across thousands of customer reviews, with some locations like Muscat demonstrating exceptional performance potential. Regional success appears strongest in densely populated urban and suburban areas, particularly in shopping centers and high-foot-traffic locations.

Market analysis suggests expansion opportunities in both domestic and international markets. Within the U.S., the franchise's strongest performance typically occurs in locations with high daytime population density and proximity to retail centers.

For prospective franchisees, ideal locations should prioritize:
- High-visibility retail corridors with substantial foot traffic
- Shopping centers or malls with strong anchor tenants
- Areas with diverse demographic mix and steady daytime population
- Regions with growing quick-service restaurant demand

With over 35 years of operational experience and a proven track record in various markets, Charleys continues to demonstrate strong potential for further expansion both domestically and internationally.
Total US locations
761
Franchise units
700
Corporate locations
61
Avg. sq. footage
N/A

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Financial Analysis

The numbers behind Charleys

Avg gross revenue$942,354
Investment range$202,059 – $668,967
Investment midpoint$435,513
Brand fund3%
Royalty6%
Franchise fee$24,500
Min. net worth
Min. liquid capital
Charleys presents an accessible entry point into the fast-food franchise sector with investment requirements of $202,059 to $668,967, positioning significantly below the sub-sector average range of $713,504 to $1,813,121. This lower barrier to entry makes the concept attractive for first-time franchisees or investors seeking portfolio diversification without premium capital commitments.

The sandwich shop segment benefits from consistent consumer demand for quick-service options, with Philly cheesesteaks representing a differentiated menu position within the crowded fast-food landscape. The reported gross revenue of $942,354 trails the sub-sector average of $1,149,168, though this may reflect the brand's focus on accessible investment levels and operational efficiency.

With 761 units and 38 years of operation since 1986, Charleys demonstrates substantial system maturity and franchising experience. This extensive operational history suggests refined business processes, established supply chains, and proven unit economics across diverse markets.

The counter-service model offers operational simplicity with limited seating requirements and streamlined labor needs. However, investors should consider the competitive intensity within fast-casual dining and the importance of securing high-traffic locations for success.

Ideal candidates possess $200,000+ liquid capital with food service experience or strong operational backgrounds. The brand suits investors seeking established franchise systems with lower entry costs and proven market presence. Multi-unit development opportunities may appeal to experienced operators looking to scale within defined territories.
Did you know? Did you know that bringing Charleys' famous Philly cheesesteaks and loaded grill subs to your community requires a total investment between $202,059 and $668,967, which includes the $24,500 franchise fee plus all the equipment, buildout, and working capital needed to launch your own piece of this beloved sandwich empire?

Financing partners

Vetted partners, tailored to franchisees

Your Franzy advisor can connect you with these partners later in the process — competitive rates, specialized in franchise financing.

FranFund

Lender

CRF USA

Nonprofit SBA lender; provides financing for franchise acquisitions, startups, and expansion.

Lender

First Bank of the Lake

Lender

Pension Pros

Lender

FDD Item 7

Initial investment range

$202K–$669K
Most common
$202,059
Minimum
$435,513
Midpoint
$668,967
Maximum

Per FDD Item 7, total initial investment ranges from $202,059 to $668,967. The midpoint $435,513 is what most franchisees report at signing — financing typically reduces cash-at-close by 80–90%. Knowing the investment range helps you plan confidently and ensure you're fully prepared to make the leap.

FDD Item 19

Average gross sales

$2M$1M$900K$600K$300KN/A
$852K
$914K
$942K
2022
2023
2024
Avg
$903K
YOY change (2023 -> 2024)
+3%

According to Item 19 of the Franchise Disclosure Document, Charleys has an average gross revenue of $942K. (Note: This information is based on the latest FDD in our records. Please review the Franchise Disclosure Document (FDD) and confirm this information directly with the brand. We make no claims of accuracy for the information presented.)

Growth over time

Franchise footprint

+13% YoY
1,0008006004002000
2017
2018
2019
2020
2021
2022
2023
2024
761 units open as of 2024 FDD+88 in last 12 mo

2024 Franchise Disclosure

FDD documents

Below are items 2, 3, 4, 7, 11 and 19 for Charleys's 2024 FDD. The complete FDD is delivered to you directly by the franchisor, per the FTC Franchise Rule.

Estimated initial investment
FDD Item 7 · PDF
Financial performance representations
FDD Item 19 · PDF
Members-only items
Executive team
FDD Item 2 · PDF
Litigation
FDD Item 3 · PDF
Bankruptcy
FDD Item 4 · PDF
Franchisor assistance
FDD Item 11 · PDF
Members only
Unlock the 2024 FDD

Connect to download Items 2, 3, 4, and 11 — direct from the franchisor.

Buyer FAQs

Frequently asked questions

The initial investment for a Charleys franchise typically ranges between $202,059.00 and $668,967.00. This includes the franchise fee, equipment, real estate, and other startup costs. To get a detailed breakdown and better understand the financial requirements, we recommend scheduling a call with the Franzy team. We'll walk you through the specifics and answer any questions you might have. For more detailed information, refer to the financial sections of the FDD.

Disclaimer. The information provided on this page is based on the latest Franchise Disclosure Document (FDD) that is publicly available and that we have on record, which was issued in 2024. This information is for informational purposes only and is not intended to constitute legal, financial, or business advice. We make no guarantees or claims regarding the completeness or accuracy. For the most current and detailed information, we recommend consulting the franchisor directly for the most recent FDD and regarding any questions that you may have about the information provided.

Charleys
Charleys
$942K avg revenue · 700+ US franchises

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