Schlotzsky's

Schlotzsky's

Information based on 2024 FDD

Food & Beverage · Sub Sandwiches

Investment min
$575K
Total: $575K–$1M
Avg gross revenue
$1M
Unit-level, 2024
Franchise fee
$36K
Per current disclosure
Royalty
6%
of gross revenue
Locations
295
Franchising since 1976

Description

What is Schlotzsky's?

Founded in Austin, Texas in 1971, Schlotzsky's has grown into a beloved national sandwich chain renowned for its distinctive made-from-scratch sourdough buns and unique flavor combinations. The brand's signature item, 'The Original' sandwich, featuring a proprietary blend of meats, cheeses, and olives, helped establish Schlotzsky's as a standout in the competitive fast-casual dining sector.

What sets Schlotzsky's apart is their commitment to fresh-baked bread, with each location baking their famous sourdough buns daily, filling their restaurants with an irresistible aroma that draws customers in. Their menu has evolved beyond their iconic sandwiches to include gourmet pizzas, fresh salads, and artisan soups, catering to diverse taste preferences and dietary needs.

The brand has successfully maintained its quality and consistency across hundreds of locations while adapting to modern consumer preferences. Their restaurants feature a warm, welcoming atmosphere with efficient service models including dine-in, drive-thru, and digital ordering options. The integration with Cinnabon in many locations adds a sweet complement to their savory offerings.

Customer reviews consistently praise Schlotzsky's for their generous portion sizes, fresh ingredients, and exceptional service. The brand has built a loyal following through their commitment to quality and innovation, while maintaining the authentic taste that made them famous. With a strong presence across multiple states and a proven operational model, Schlotzsky's continues to attract customers and entrepreneurs alike with their unique position in the fast-casual restaurant space.
  • 53-year proven restaurant concept
  • 317 locations across 23 states
  • Above-average revenue performance metrics
  • Diverse menu beyond sandwiches
  • Established brand recognition nationwide
  • Premium fast-casual market positioning

Location Analysis

Where Schlotzsky's wins

Schlotzsky's maintains a strategic presence across multiple states with numerous locations, demonstrating strong regional concentration in the South and expanding presence in the Midwest. Texas represents the brand's core market, with significant presence, followed by notable concentrations in North Carolina and Georgia, indicating robust market penetration in the Southeast. The franchise's strong customer rating across thousands of reviews suggests consistent operational excellence and positive brand reception.

The franchise shows particular strength in suburban and mid-sized urban markets, with successful penetration in states like Michigan and Missouri. This geographic distribution reveals a strategic focus on markets with strong lunch crowds and business districts. While Texas remains the primary market, the brand's success in diverse regions demonstrates adaptability to different market conditions.

Ideal locations typically feature high daytime population density, proximity to business districts, and accessible parking. The franchise performs particularly well in locations with a mix of residential and commercial zones, suggesting opportunity for both lunch and dinner service. Expansion opportunities exist in the Northeast and Western states, where the brand has limited presence despite favorable demographics and market conditions. New franchisees should prioritize locations with strong white-collar employment bases, retail corridors with complementary businesses, and areas with median household incomes above $50,000.
Total US locations
317
Franchise units
295
Corporate locations
22
Avg. sq. footage
N/A

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Financial Analysis

The numbers behind Schlotzsky's

Avg gross revenue$1,143,575
Investment range$575,185 – $1,305,765
Investment midpoint$940,475
Brand fund4%
Royalty6%
Franchise fee$35,500
Min. net worth
Min. liquid capital
Schlotzsky's requires a substantial investment ranging from $575,185 to $1,305,765, positioning it in the premium tier of the sub sandwich sector where average investments span $419,677 to $864,432. This higher capital requirement reflects the brand's established operational infrastructure and comprehensive restaurant buildout needs typical of full-service sandwich concepts.

The franchise demonstrates strong system maturity with 53 years of operational history since 1971 and maintains 317 units nationwide, indicating proven scalability and franchisor experience. This extensive footprint across 23 states suggests robust brand recognition and operational systems, though the unit count reflects a more selective growth approach compared to larger quick-service competitors.

Schlotzsky's reported gross revenue of $1,143,575 substantially exceeds the sub-sector average of $608,302, potentially reflecting the brand's premium positioning and diverse menu offerings including specialty pizzas and salads beyond traditional sandwiches. The fast-casual segment continues benefiting from consumer preferences for higher-quality ingredients and customizable options.

Ideal investors should possess significant liquid capital given the elevated investment threshold, with restaurant or multi-unit retail experience preferred for managing operational complexity. The brand's established presence may limit prime territory availability, requiring careful market analysis during site selection.

Prospective franchisees must thoroughly review the Franchise Disclosure Document and conduct comprehensive due diligence, particularly regarding territory rights, ongoing fees, and local market dynamics before making investment decisions.
Did you know? Starting your own Schlotzsky's franchise - famous for their toasted sandwiches served "Funny Side Up" - requires a total investment between $575,185 and $1,305,765, which includes the $35,500 franchise fee plus all equipment, buildout, and working capital needed to bring this beloved Austin-born brand's unique oven-toasted concept to your community.

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

$575K–$1M
Most common
$575,185
Minimum
$940,475
Midpoint
$1,305,765
Maximum

Per FDD Item 7, total initial investment ranges from $575,185 to $1,305,765. The midpoint $940,475 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
$1M
$1M
$1M
2022
2023
2024
Avg
$1M
YOY change (2023 -> 2024)
+4%

According to Item 19 of the Franchise Disclosure Document, Schlotzsky's has an average gross revenue of $1M. (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

-3% YoY
5004003002001000
2017
2018
2019
2020
2021
2022
2023
2024
317 units open as of 2024 FDD-9 in last 12 mo

2024 Franchise Disclosure

FDD documents

Below are items 2, 3, 4, 7, 11 and 19 for Schlotzsky's'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 Schlotzsky's franchise typically ranges between $575,185.00 and $1,305,765.00. 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.

Schlotzsky's
Schlotzsky's
$1M avg revenue · 295+ US franchises

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