Fazolis
Fazoli's offers franchises for various types of restaurants, including freestanding locations, in-line units, nontraditional venues, and delivery-only "ghost kitchens." Known for its pasta dishes and hearty meals, Fazoli's operates in the quick-service restaurant industry.
About Fazolis
Fazoli's System Management, LLC., or Fazoli's, is an American fast casual restaurant chain headquartered in Lexington, Kentucky. It was founded in 1988 and is now owned by FBG Bid Co. As of June 2026, there are 147 Fazoli's locations nationwide specializing in Italian-American cuisine.
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Fazolis franchise FAQ
How much does it cost to open one — the total initial investment?
The total initial investment to begin operation of a freestanding Fazoli's Restaurant ranges from $1,510,500 to $2,399,500. For an in-line end-cap Fazoli's Restaurant, the range is between $868,500 and $1,618,500. This includes a mandatory payment of between $95,500 and $116,500 to the franchisor or its affiliates. [p.1]
What is the initial franchise fee?
The initial franchise fee is $50,000 and is due upon execution of the signed agreement [p.19]. This fee is fully earned by the company upon payment and is not refundable for any reason, including if an acceptable site cannot be found [p.19].
What are the ongoing royalty and advertising fees?
The ongoing royalty fee is 5% of Net Sales, while the advertising fee is 4% of Net Sales [p.63]. These fees reflect imputed expenses that franchisees incur in operating their restaurants, even though they do not directly pay these amounts to the company [p.63].
How long is the initial franchise agreement, and can I renew it?
The initial franchise agreement does not automatically renew upon expiration of its initial term [p.114, p.280]. However, the franchisee has the option to renew for up to two additional ten-year terms each under the conditions specified [p.114], or three additional five-year terms each if the agreement is similar to the one on page 280.
Can I sell or transfer my franchise, and what does that require?
According to the FDD excerpts, you can sell or assign your entire interest in the franchise upon dissolution or death [p.153]. However, a personal representative or trustee must seek consent from the franchisor if there is no bona fide offer, except when heirs or legatees qualify as franchisees under the terms specified [p.153]. Additionally, the franchisor can refuse transfer for good cause, which includes but is not limited to unspecified reasons [p.248, p.6].
On what grounds can the franchisor terminate the agreement?
The franchisor can terminate the agreement on various grounds, including if the franchisee fails to comply with any lawful provision of the franchise agreement and does not cure such failure within a reasonable time [p.252, p.248]. Additionally, termination is possible if the franchisee loses the right to operate the Ancillary Business, or in cases where the franchisor decides to withdraw from Nontraditional Locations or finds that the quality of the Ancillary Business has significantly declined [p.58].
What financial requirements — net worth and liquid capital — do I need to qualify?
This isn't specified in the excerpts.
Do I get an exclusive or protected territory?
No, you do not receive an exclusive or protected territory under your Franchise Agreement [p.47, p.112]. The agreement does not provide any exclusive rights around the Franchise Restaurant or options to acquire additional franchises [p.112]. Additionally, the company retains the right to operate other Fazoli's Restaurants in your area and through various distribution channels [p.109, p.111].
What training and ongoing support does the franchisor provide?
The franchisor provides initial management-training programs before the restaurant opens, which include instructional manuals and hands-on training in food production and guest service [p.45]. Franchisees are also required to ensure their personnel receive ongoing training in the use and operation of the Brand Technology System [p.190], and the franchisor's I.T. Department offers certain support services related to hardware and software specified in the Online Information Center [p.185].
How many franchised outlets are there, and how many have closed or been terminated?
This isn't specified in the excerpts.
Does the franchisor share any financial performance or earnings information?
The franchisor may provide financial performance representations, but only for existing outlets and with a reasonable basis [p.60]. However, they do not make any such representations except in cases where actual records of an existing outlet are provided to a prospective franchisee purchasing that specific outlet [p.65].
What am I restricted to selling, and where must I buy supplies?
You are generally restricted to selling items as specified by the franchisor. You must purchase proprietary items either directly from the franchisor or from sources designated by them [p.32]. This includes equipment, fixtures, furnishings, food inventory, and service items, which together make up about 98% of your annual purchases in ongoing operations [p.34].