Charleys
Charleys offers quick service restaurants featuring Philadelphia-style cheese steaks, buffalo chicken wings, and grilled subs in mall food courts, airports, military bases, and Walmart locations. Known for its diverse menu options, Charleys operates in the fast-casual dining industry.
About Charleys
Charleys Cheesesteaks, officially Charleys Philly Steaks, is an American restaurant chain specializing in Philly cheesesteak headquartered in Columbus, Ohio. Formerly known as Charley's Steakery and Charley's Grilled Subs, the franchise was established in 1986 on the campus of Ohio State University. By 2017 there were 600 locations in 45 states and in 19 countries. Charleys is believed to have doubled in size in 2021. In addition to traditional Philly cheesesteaks, the chain also has other steak based sandwiches and multiple grilled chicken sandwiches, among other grilled sandwiches.
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Charleys franchise FAQ
How much does it cost to open one — the total initial investment?
The total initial investment necessary to begin operation of a CPS Restaurant ranges from $203,736 to $694,249. For a CPSW Restaurant, the range is from $220,432 to $984,732. For a CPSW Restaurant operating within a Walmart Location, the range is from $236,463 to $569,250. [p.1]
What is the initial franchise fee?
The initial franchise fee for your first restaurant is $24,500. For your second and any subsequent restaurant, it is reduced to $15,000 [p.20]. This fee is non-refundable upon payment [p.69] and constitutes part of the company's general operating funds as discretionally used by them [p.201].
What are the ongoing royalty and advertising fees?
The ongoing royalty fee is equal to the greater of $300 or 6% of Gross Sales [p.69]. For advertising, you must contribute an amount that the franchisor establishes from time to time, not to exceed 5% of Gross Sales, which are payable weekly together with the royalty fees [p.79 and p.32].
How long is the initial franchise agreement, and can I renew it?
This isn't specified in the excerpts.
Can I sell or transfer my franchise, and what does that require?
The Franchise Agreement allows you to transfer ownership of your Charleys Restaurant franchise only with the franchisor's prior written consent [p.197]. Good cause for refusal includes but is not limited to unspecified reasons [p.197]. This isn't specified in the excerpts.
On what grounds can the franchisor terminate the agreement?
The franchisor can terminate the agreement on good cause, which includes the failure of the franchisee to comply with any lawful provision of the franchise agreement and to cure such failure after being given written notice and a reasonable opportunity to do so [p.197]. Additionally, RCW 19.100.180 and Virginia Retail Franchising Act may limit the franchisor's ability to terminate the agreement without reasonable cause [p.205-206].
What financial requirements — net worth and liquid capital — do I need to qualify?
This isn't specified in the excerpts. The provided FDD focuses on initial funding needs for operating a restaurant, including supplies, utilities, working capital, payroll costs, and additional funds for the first 3 months of operation [p.22], but it does not detail specific net worth or liquid capital requirements for franchisee qualification.
Do I get an exclusive or protected territory?
No, you do not receive an exclusive territory. You may face competition from other franchisees, restaurants owned by the franchisor, or other channels of distribution controlled by competitive brands [p.38].
What training and ongoing support does the franchisor provide?
The franchisor provides periodic designation of 'Certified Training Restaurants' where training can be conducted. These locations are chosen based on various factors including proximity to the franchisee's location, convenience, and current market status. Additionally, the franchisor offers trademarks, systems, training, and store operation assistance as part of the franchise agreement [p.37]. However, specific ongoing support details beyond this are not specified in the provided excerpts.
How many franchised outlets are there, and how many have closed or been terminated?
As of December 31, 2024, there were 744 franchised Restaurants in operation. The FDD does not specify the exact number of franchised restaurants that have permanently closed or been terminated during 2024; it only mentions that 16 franchised Restaurants permanently closed and 38 were temporarily closed during that year [p.47].
Does the franchisor share any financial performance or earnings information?
The franchisor shares limited financial performance information. Specifically, it may provide actual records of an existing outlet if a franchisee is purchasing one, but generally does not make financial performance representations or authorize employees to do so [p.49]. Additionally, the document states that written substantiation of any data used in preparing financial performance representations can be provided upon request, though this information cannot include the identity or sales data of specific restaurants without consent [p.48].
What am I restricted to selling, and where must I buy supplies?
You are required to sell all food, beverage, and other products and services determined by the franchisor from time to time. However, you may have to buy or lease items from the franchisor or a limited group of suppliers designated by them, which might be more expensive than alternatives [p.43, p.3].