Pretzelmaker
Pretzelmaker offers soft pretzels, toppings, and other food products in standalone or multi-unit restaurants. Known for its classic pretzels, the brand operates in the quick-serve restaurant sector.
About Pretzelmaker
Pretzelmaker is a chain of independently owned and operated franchised stores that specialize in hand-rolled pretzels, smoothies and cold beverages. It is a franchise brand in the portfolio of Global Franchise Group. It has 86 locations in the U.S.
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Pretzelmaker franchise FAQ
How much does it cost to open one — the total initial investment?
The total initial investment necessary to begin operation of a Pretzelmaker Multi-Unit Restaurant development franchise is $50,000 and up. This includes $50,000 to $65,000 or more that must be paid to the franchisor or its affiliates [p.1].
What is the initial franchise fee?
The initial franchise fee for both Traditional and Non-Traditional Restaurants, as well as Standard Co-Brand Restaurants, is $25,000. This fee is fully earned upon payment and is not refundable [p.22, p.39].
What are the ongoing royalty and advertising fees?
The ongoing royalty fee is calculated as a percentage of Net Sales, specifically the Royalty Rate multiplied by the Net Sales of the Restaurant [p.118]. For advertising contributions, while not explicitly stated in the provided excerpts, it can be inferred that there are such fees since the FDD mentions spending from the Fund on marketing activities and advertising [p.58], but the exact percentage is not specified. Additionally, upon renewal, the franchisee must pay a renewal fee equivalent to 40% of the current Initial Fee charged to new franchisees [p.116].
How long is the initial franchise agreement, and can I renew it?
This isn't specified in the excerpts. The FDD does not provide details about the length of the initial franchise agreement or its renewal terms beyond mentioning that if you are renewing your franchise agreement, you must comply with then-current training requirements [p.54] and that Franchisor may offer to renew under certain conditions related to applicable law and their ability to offer a current form of franchise agreement [p.117].
Can I sell or transfer my franchise, and what does that require?
According to the FDD, you can sell or transfer your franchise, but it requires giving notice to the franchisor. Specifically, you must provide details such as the name and address of the proposed transferee, the number of units offered, the price, and other terms and conditions [p.302]. Additionally, the franchisor may refuse to permit the transfer for good cause, which includes but is not limited to unspecified reasons [p.6].
On what grounds can the franchisor terminate the agreement?
The franchisor can terminate the agreement on any grounds available by law [p.248]. However, under Virginia law, termination without reasonable cause is unlawful [p.255]. Good cause for termination includes failure to comply with lawful provisions of the franchise agreement and failing to cure such failures after receiving written notice and a reasonable opportunity to cure [p.6(c)].
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 territory [p.63, p.61]. You may face competition from other franchisees, from outlets that the franchisor owns, or from other channels of distribution or competitive brands that the franchisor controls [p.63, p.61].
What training and ongoing support does the franchisor provide?
The franchisor provides initial training programs that are 3 to 8 days in duration, including topical training handbooks and online videos [p.56]. For ongoing support, franchisees must ensure their personnel receive ongoing training in the use and operation of the Brand Technology System [p.315]. Additionally, the franchisor may provide additional training via various means such as in-person sessions, teleconferences, or online models at its discretion [p.124].
How many franchised outlets are there, and how many have closed or been terminated?
As of December 31, 2024, there were no franchised Smokey Bones restaurants operating [p.12]. This isn't specified in the excerpts regarding any closed or terminated franchises.
Does the franchisor share any financial performance or earnings information?
The franchisor may provide financial performance information if there is a reasonable basis for it, as specified in [p.83]. However, they do not make any financial performance representations beyond what is included in Item 19 of the FDD, and they do not authorize their employees or representatives to make such representations either orally or in writing, except under specific conditions (e.g., providing actual records of an existing outlet for sale) as detailed in [p.88].
What am I restricted to selling, and where must I buy supplies?
You are restricted to selling only the specific brand and/or product mix as required by the franchisor, which may be determined by inventory percentage or retail space. You must obtain prior written approval from the franchisor before selling any merchandise. Additionally, you may have to buy or lease items from the franchisor or a limited group of suppliers designated by them, potentially at higher costs than other suppliers [p.4].