Wetzels Pretzels
Wetzels Pretzels offers handrolled soft pretzels, hot dogs, and beverages in bakery or mobile formats. Known for fresh-baked pretzels, this franchise operates in the quick-service food industry.
Wetzels Pretzels franchise FAQ
How much does it cost to open one — the total initial investment?
The total initial investment for a single WETZEL'S PRETZELS® Bakery ranges from $183,000 to $710,450. For a WETZEL'S PRETZELS® Concession Truck or Trailer, the range is between $172,125 and $317,900. This includes fees that must be paid to the franchisor, among other costs [p.1, p.41-43].
What is the initial franchise fee?
The initial franchise fee varies based on the type of location. For a traditional WETZEL'S PRETZELS Bakery, it is $40,000 [p.32]. For Concession Trucks or Trailers, it is $7,500 [p.33]. Non-traditional locations like convenience stores and military bases have an initial fee of $20,000, while roadside plazas or retail outlets cost $25,000 [p.41]. This isn't specified in the excerpts for other non-traditional formats.
What are the ongoing royalty and advertising fees?
The ongoing weekly royalty fee is seven percent (7%) of Adjusted Gross Revenue for most franchisees, but it is five percent (5%) for those operating a streetside Bakery. Additionally, franchisees must pay fees to promotional funds, which are used for advertising and promotional purposes. These amounts are collected by the company as an agent and reported on a gross basis in the consolidated statements of operations and comprehensive income [p.156].
How long is the initial franchise agreement, and can I renew it?
The initial term of the franchise begins on the Effective Date and will expire five years from the Start Date [p.295]. The ability to renew the franchise depends on the franchisor's decision, as this isn't specified in the provided excerpts regarding renewal terms or conditions.
Can I sell or transfer my franchise, and what does that require?
You must obtain written consent from the Franchisor before selling or transferring your franchise, except for good cause which is defined but not limited to failing to meet the franchisor's current reasonable qualifications. The Franchisor may reasonably withhold consent, but will not do so without a valid reason. [p.212]
On what grounds can the franchisor terminate the agreement?
The franchisor can terminate the agreement for good cause, which includes the failure of the franchisee to comply with lawful material provisions of the franchise agreement and to cure such default after being given written notice and a reasonable opportunity (no more than 30 days) to do so. Additionally, if there are three willful and material breaches within a twelve-month period that are not cured, or in cases where the franchisee is adjudicated bankrupt, makes an assignment for the benefit of creditors, voluntarily abandons the business, or is convicted of a relevant crime, termination can occur without prior notice. [p.6, p.247, p.269]
What financial requirements — net worth and liquid capital — do I need to qualify?
The FDD does not specify exact net worth or liquid capital amounts required to qualify as a franchisee [p.213]. It states that financial responsibility is one of the criteria considered, but the specific thresholds are not detailed in these excerpts.
Do I get an exclusive or protected territory?
No, you do not receive an exclusive territory. You may face competition from other franchisees, outlets owned by the franchisor, or other competitive brands controlled by them [p.58]. However, WETZEL'S PRETZELS franchisees might have a one-year option to enter a specific mall or shopping center under certain conditions, but this is not guaranteed for all locations [p.60].
What training and ongoing support does the franchisor provide?
The franchisor provides an initial training program that includes a training manual and the Manual, which will be conducted as often as needed to ensure completion close to store opening [p.58]. Additional training may also be administered later at your Franchised Business. If you or your Designated Manager fail to successfully complete the initial training program, the franchisor has the right to offer remedial courses before considering termination of the franchise [p.202].
How many franchised outlets are there, and how many have closed or been terminated?
The FDD does not specify the exact number of franchised outlets currently in operation or those that have closed or been terminated. It only mentions that Exhibit E-1 lists the names, addresses, and telephone numbers of all current franchisees as of November 30, 2024 [p.83], and Exhibit E-2 provides information on franchisees who have had their outlets terminated, canceled, not renewed, or otherwise ceased to do business during the most recently completed fiscal year or who have not communicated with the company within ten weeks of the disclosure document issuance date [p.84].
Does the franchisor share any financial performance or earnings information?
The franchisor, Wetzel's Pretzels, LLC, does not make any financial performance representations about a franchisee's future financial performance or that of company-owned or franchised outlets [p.71]. However, if you are purchasing an existing outlet, they may provide actual records of that outlet’s performance [p.71]. Additionally, the franchisor can provide financial performance information if there is a reasonable basis for it and if such information is included in the disclosure document [p.71]. This isn't specified in the excerpts regarding sharing earnings information directly, but the provision exists for providing actual records upon request.
What am I restricted to selling, and where must I buy supplies?
You are restricted to offering and selling only the products and services that the franchisor has authorized you to provide [p.65]. As for supplies, you may have to purchase certain items from the franchisor or a limited group of suppliers designated by them, which might be more expensive than similar items available elsewhere [p.4]. However, aside from proprietary products, you are not required to buy from these approved suppliers and can choose other approved suppliers that meet their specifications instead [p.47].