Are you looking for a fantastic and affordable franchise business that has an already established reputation? There are quite a few on the market that may have caught your eye. In fact, there are millions of opportunities across the country all in different industries. When you become a franchise owner, you have a long list of requirements and responsibilities that you have to take on. You’re going to be owning your own business, but at the same time, you’re taking on someone else’s brand. You’re under the obligation to keep their vision alive and help build a wonderful establishment that coincides with their company. So when you decide on franchising, you need to make sure that is a company you love and believe in. If the food industry is one that excites and interests you, Philly Pretzel Factory has a fantastic opportunity that you just might fall in love with. I’ll be going over the details and requirements for this franchise so that you can decide on whether or not this opportunity suits your needs for a business. Let’s dive right in and get started.
The Philly Pretzel Factory Experience
For a long time, soft pretzels have become a snack that is enjoyed by many. Whether it be at the mall, ball games, festivals, or even at home, everyone enjoys a fresh-baked soft pretzel. Philly Pretzel Factory isn’t limited to Philly locations. In fact, the business is growing dramatically and we, or I, couldn’t be happier! Their menu list is short and simple but oh so tasty. They not only offer fresh out of the oven pretzels, but they offer pretzel bites, pretzel dogs, pepperoni melts, cinnamon pretzel twists, and pretzel cheesesteaks. Can you say yum? Each pretzel is made with freshly made dough and hand-twisted every day. You can taste the amount of dedication and care that goes into each hand-made pretzel. If this business excites you, then you will be happy to know that Philly Pretzel Factory offers an incredible franchise opportunity that is as well-loved and appreciated as their yummy pretzels. We can sit here and talk about pretzels all day, but let’s get into the real reason as to why you are here. The franchise opportunity.
Philly Pretzels and Opportunities
If you’ve never had a Philly Pretzel, you may not understand the awesomeness that this company brings to the community. However, you have the chance to become an owner of this franchise and be in all of your glory with as many pretzels as you desire. Which, could pose to be a problem if you eat all of your inventory. But as long as you keep it coming in, then you’re good to go. The Philly Pretzel Factory has a very decent level of growth for their franchise outlets, which tells us just how popular the business actually is. Almost half of all locations are run by franchise owners. In fact, as of the end of 2017, there were a total of 159 operating franchise outlets. That’s a growth of 54 outlets in 7 years. While it’s not extreme, it does clue us in that there has been a definite interest in this growing opportunity. Especially since nearly 50% of all locations are franchise-run. However, the one negative aspect here would be the fact that the turnover rate is getting higher into the risk level. The current turnover rate for this company is 12.34, which could indicate that too many franchise owners have terminated their agreement or that they just decided on not renewing their agreement after the 10 years were up. To find out the reasoning behind this high turnover rate, it would be best to ask the company direct questions that will tell you what the logic was for not continuing the agreement.
When it comes to the cost of owning this business, there are a few investments that you’ll have to make. Your first expense is the franchise fee. For Philly Pretzel Factory the franchise fee is $35,000. However, your total investment will be between $134,000 and $328,000. There are ongoing fees that you are required to pay for the entire 10-year agreement. The royalty fee is 6% and there is an advertising fee of 2%. While there are no recorded cost for a renewal fee, for the 10-year renewal (if chosen to pursue) you will have to still pay the ongoing fees. These costs come with nearly every franchise. And honestly, it’s not too high compared to other companies.
There are a few other factors that you must consider when deciding on a franchise. One is the financial transparency that the company offers. Unfortunately, not every company will provide this information. Luckily, the Philly Pretzel Factory offers a high level of transparency with its franchises. When you own this franchise, you will be given information on specific individual locations, detailed data on expenses, quarterly and system-wide average revenue data, and sales numbers from affiliate locations. This type of data and information can be extremely helpful for you as a franchise owner. The company also provides in-class and on the job training to its franchisees so that you can fully understand how to run the business. Another great advantage is that you will receive territory rights to your franchise location. So, once again, this company definitely offers a decent opportunity here for you.
However, with every positive, there will always be something negative about a company. Philly Pretzel Factory has been involved in lawsuits, so you would need to request more details on that to find out more information. The company also does not offer any refunds under any circumstances. So if you choose to pursue this opportunity, you need to be sure that you fall in love with the business and stay committed to making it work.
Wrapping it Up
Philly Pretzel Factory is one of the many outstanding franchise opportunities on the market. It may be hard to narrow down your decision, but when given the information and details, it may now be easier to come to a conclusion. This specific franchise business has a lot of benefits to owning the business. While there are a few downsides, they can surely be overlooked depending on the severity and your personal values. As always, it’s best to contact the company directly and have all your questions answered directly and completely. Franchising is a big responsibility, but it can be extremely rewarding when you go about it the right way and go all in on it. Overall, I believe the Philly Pretzel Factory offers a very good franchise business for individuals looking to enter into the food industry. What’s your next move going to be?