Schlotzsky's franchise startup costs run $619K–$998K for a fast-casual deli/sandwich concept owned by Focus Brands with 350+ locations nationwide. The Original — a round sourdough sandwich — anchors a menu that has expanded into flatbreads, soups, and salads.
Schlotzsky's is a fast-casual deli and sandwich franchise founded in Austin, Texas in 1971. The brand is owned by Focus Brands, a multi-brand franchise platform that also operates McAlister's Deli, Moe's Southwest Grill, Cinnabon, Jamba, Auntie Anne's, and Carvel. Schlotzsky's operates 350+ locations primarily in the South, Southwest, and Midwest. The brand's signature is The Original — a round, freshly baked sourdough sandwich — alongside flatbreads, soups, and salads. A Cinnabon co-branding option at some locations adds a bakery revenue stream.
Per the current FDD filed under the FTC Franchise Rule (16 CFR Part 436), total estimated initial investment for a Schlotzsky's franchise runs $619,000–$998,000. The inline fast-casual format keeps build-out costs lower than full-service or dine-in heavy concepts:
Schlotzsky's charges a 6% royalty on gross sales plus a 4% advertising fund contribution, for a combined 10% of gross sales. The 4% ad fund is at the higher end for fast-casual sandwich concepts, reflecting Focus Brands' investment in system-wide digital and media marketing.
Schlotzsky's is listed on the SBA Franchise Directory, qualifying franchisees for expedited SBA loan processing. Financing paths:
Fast-casual sandwich concepts in strong trade areas typically target break-even within 24–36 months. Schlotzsky's sourdough bread baking program is a differentiator — the fresh-baked smell drives impulse visits — but it also adds operational complexity versus fully assembled sandwich concepts. Operators in office-dense or high-foot-traffic locations ramp faster. The optional Cinnabon co-brand adds a morning daypart revenue layer that can meaningfully accelerate payback.
Schlotzsky's suits operators with fast-casual or sandwich restaurant experience who are comfortable managing an in-house bread baking program. Focus Brands' multi-brand infrastructure provides marketing, technology, and supply chain support. Typical financial benchmarks are net worth of $350K+ and liquid capital of $120K+. Co-branding a Cinnabon requires additional investment and franchisor approval.
Schlotzsky's is listed on the SBA Franchise Directory, enabling expedited SBA eligibility review. At $619K–$998K with a 10% combined fee load, lenders carefully evaluate unit economics before approval. Lenders evaluate the following per SBA SOP 50 10 7:
Schlotzsky's $619K–$998K investment fits cleanly within SBA 7(a) program limits for leased inline fast-casual locations. The Focus Brands SBA pre-approval relationship streamlines the eligibility review step. Bakery equipment (sourdough proofing and baking systems, $20K–$50K) can be financed separately via equipment lending to preserve SBA capacity for the build-out. If a Cinnabon co-brand is part of the plan, include both investments in the same loan package from the start — adding it later requires a separate loan application.
ClearValue Lending works with fast-casual sandwich and deli franchise operators on SBA, equipment, and working capital financing. Apply for franchise financing at Find my match. Your file routes to one matched lender.
Per the current FDD, total estimated initial investment runs $619,000–$998,000. The $30,000 franchise fee, leasehold improvements, kitchen equipment, and in-house sourdough bread baking program are the primary cost drivers.
Schlotzsky's is owned by Focus Brands, a multi-brand franchise platform headquartered in Atlanta that also owns McAlister's Deli, Moe's Southwest Grill, Cinnabon, Jamba, Auntie Anne's, and Carvel.
Schlotzsky's charges a 6% royalty on gross sales plus a 4% advertising fund contribution, for a combined 10% of gross sales.
Yes. Schlotzsky's is on the SBA Franchise Directory. SBA 7(a) covers leased locations within standard program limits. Kitchen and bakery equipment can be financed separately via equipment lending.
Some Schlotzsky's locations operate with a Cinnabon co-brand, adding a morning daypart bakery revenue stream. Co-branding requires additional investment and Focus Brands franchisor approval — it is not available at every location.
SBA guidelines require a minimum 1.15× DSCR. For Schlotzsky's, lenders apply a conservative DSCR model that includes the full 10% combined fee load (6% royalty + 4% ad fund), food cost (~28–32% of gross sales), and labor (~30–35%). Operators must document stable AUV projections with local market data — lenders will stress-test at 80% of projected volume to confirm coverage still holds.
SBA requires a minimum 10% equity injection of total project cost — $62K–$100K on $619K–$998K. Lenders on fast-casual builds typically require 20% ($124K–$200K) in documented borrower funds. If a Cinnabon co-brand is planned (adding $50K–$120K), that additional investment should be included in the loan package from the start, with corresponding additional equity.