Philly Pretzel Factory franchise
2026 filing · April 30, 2026GrowingShares sales figures
Philly Pretzel Factory at a glance
A bakery shop selling fresh-baked Philadelphia-style soft pretzels. At the end of 2025 there were 164 Philly Pretzel Factory locations in the US, 160 franchised and 4 company-owned.
The business
- Franchisor
- Soft Pretzel Franchise Systems, Inc
- The company that sells the franchises
- Franchising since
- 2004
- 22 years of selling franchises
- Typical size
- 800–1,600 sq ft
What you pay
- Cost to open
- $430K–$685K
- A traditional full-production bakery
- Franchise fee
- $40,000
- $25,000 for each additional territory
- Royalty
- 6%
- 6% of gross sales, paid weekly, plus 2% to the system-wide brand fund and 3% on local advertising
- Brand fund
- 2%
- 2% of gross sales
- Agreement length
- 10 years
Where it is
- US locations, 2025
- 164
- Franchised and company-owned
- Franchised
- 160
- Company-owned
- 4
- Change in 3 years
- +17
- Franchised locations, 2023–2025
From Soft Pretzel Franchise Systems, Inc’s 2026 filing; revenue and net income from its audited financial statements, page 95; SBA status from the SBA Franchise Directory, October 28, 2026.
Franchisor revenue is the company that sells the franchises (royalties, fees and anything else it earns), not what a location makes.
Where it ranks
Philly Pretzel Factory among all franchises with the same figure.
| Figure | Philly Pretzel Factory | Among all franchises |
|---|---|---|
| Cost to open, midpointHalfway between the low and high estimate | $557,624 | Costs more than 68% of franchises |
| Franchise feePaid once, when you sign | $40,000 | Lower than 46% of franchises |
| RoyaltyShare of sales paid to the franchisor | 6% | Higher than 35% of brands with a set rate |
| US locationsFranchised and company-owned | 164 | More than 83% of franchises |
| Sales per locationYearly, as the brand reports it | $616,826 | Lower than 62% of brands that share sales figures |
| Sales against cost to openYearly sales over the cost midpoint | 1.1× | Lower than 72% of brands that share sales figures |
How much a Philly Pretzel Factory franchise costs
Opening a traditional full-production bakery costs an estimated $430,024 to $685,224. That covers the franchise fee and everything else needed to open, through the first months of working capital.
The biggest costs are construction/leasehold improvements ($190,000 to $275,000) and equipment ($150,000 to $200,000). Here is every line of the estimate as filed:
| What it pays for | Range | Low | High |
|---|---|---|---|
| Initial Franchise Fee | $40,000 | ||
| Rent | $1,100 | $7,500 | |
| Lease Deposit | $1,100 | $15,000 | |
| Architect Fees | $12,500 | $15,500 | |
| Construction/Leasehold Improvements | $190,000 | $275,000 | |
| Equipment | $150,000 | $200,000 | |
| Ice Cream/Water Ice Equipment (Optional) | $0 | $55,000 | |
| Computer System, Office Supplies & Miscellaneous Equipment | $1,624 | $2,224 | |
| Promotional Materials | $500 | $2,500 | |
| Grand Opening Advertising Requirement | $5,000 | ||
| Permits and Licenses | $400 | $4,000 | |
| Training Expenses | $100 | $2,000 | |
| Signage | $3,200 | $12,000 | |
| In-Store Camera Surveillance System | $500 | $1,000 | |
| Prepaid Insurance Premium | $3,000 | $5,000 | |
| Utility and Telephone Deposits | $500 | $2,000 | |
| Legal Costs | $500 | $1,500 | |
| Initial Inventory | $10,000 | $15,000 | |
| Additional Funds | $10,000 | $25,000 | |
| Total | $430,024 | $685,224 | |
Source: Soft Pretzel Franchise Systems, Inc, 2026 filing, page 20
Philly Pretzel Factory franchise fee
The franchise fee is $40,000, $25,000 for each additional territory. You pay it when you sign the franchise agreement.
Source: Soft Pretzel Franchise Systems, Inc, 2026 filing, page 12
Royalty and ongoing fees
| Royalty | 6% of gross sales, paid weekly, plus 2% to the system-wide brand fund and 3% on local advertising. |
|---|---|
| Brand or marketing fund | 2% of gross sales. |
| Technology Fee | Then current fee, currently $0. |
| Local Advertising | 3% of Gross Sales |
The typical franchise royalty is 6% of sales, plus 2% for marketing. See franchise fees and royalties to compare.
Source: Soft Pretzel Franchise Systems, Inc, 2026 filing, page 13
Other fees as filed, from pages 13–16. The filing lists every fee, including late fees and audit costs.
Sales and earnings
Shares figures Philly Pretzel Factory publishes sales or earnings figures for its locations. The full tables, with notes on which locations are counted, are in its filing.
- Average sales
- $616,826
- Median sales
- $533,223
Yearly figures for 2025, covering franchised full-production traditional factories open all of 2025. The average is about 1.1 times the midpoint of the cost to open.
Sales are what a location takes in before rent, payroll, royalties and other costs, not what its owner keeps.
Source: Soft Pretzel Franchise Systems, Inc, 2026 filing, pages 49–51
SBA loans to Philly Pretzel Factory franchisees
Lenders approved 124 SBA-backed loans for Philly Pretzel Factory franchisees from 2007 to 2026, $23.2M in all: 123 7(a) loans and 1 504 loan. Of the 97 that have ended, 74 were paid in full and 23 were charged off (23.7%). The other 27 haven’t ended yet.
A charged-off loan is one written off as uncollectible. See SBA franchise loans for how 7(a) and 504 loans work.
Source: SBA 7(a) and 504 loan data, as of September 30, 2026
Growth and closures
Share of franchised locations, 2025 / 2023–2025. Typical means the median: half of brands are above it, half below.
| Measure | Philly Pretzel Factory | Typical bakery brand | Typical franchise |
|---|---|---|---|
| GrowthNet change in franchised locations | +3.2% / +12% | +3.3% / +5.9% | +1.2% / +10% |
| ClosuresTerminated, not renewed or stopped operating | 1.9% / 6.3% | 3.2% / 11% | 3.9% / 16% |
| Bought backLocations the franchisor took back | 2.6% / 4.9% | 0% / 0% | 0% / 0% |
Typical bakery brand is the median of the 33 brands in bakery franchises with three years of counts.
How Philly Pretzel Factory compares
Of the 112 bakery franchises on this site, Philly Pretzel Factory is the 69th cheapest to open and the 17th largest by number of locations.
| Figure | Philly Pretzel Factory | Typical bakery brand | Typical franchise |
|---|---|---|---|
| Cost to open, low end | $430K | $341K | $222K |
| Cost to open, high end | $685K | $720K | $477K |
| Franchise fee | $40K | $40K | $40K |
| Royalty | 6% | 6% | 6% |
| Brand fund | 2% | 2% | 2% |
| Sales per location | $617K | $792K | $794K |
| US locations | 164 | 16 | 21 |
| Shares earnings figures | Yes | 74 of 112 | 2,147 of 3,352 |
Typical is the median across the 112 brands in bakery franchises; typical franchise, across every brand here.
Locations opened and closed
| Year | Franchised | Company-owned | Opened | Closed |
|---|---|---|---|---|
| 2023 | 146 (+3) | 10 | +7 | −4 |
| 2024 | 155 (+9) | 7 | +14 | −5 |
| 2025 | 160 (+5) | 4 | +12 | −7 |
Closed or left counts terminations, non-renewals, locations bought back by the franchisor and locations that stopped operating.
See which brands grew most in the fastest-growing franchises rankings.
Philly Pretzel Factory passes all five tests on our list of the best franchises to own and ranks number 65.
Philly Pretzel Factory ranks number 22 of 36 on our list of the best restaurant franchises.
More in the guides: franchise failure rates.
Source: Soft Pretzel Franchise Systems, Inc, 2026 filing, page 58
Who owns Philly Pretzel Factory?
Philly Pretzel Factory franchises are sold by Soft Pretzel Franchise Systems, Inc.
From Soft Pretzel Franchise Systems, Inc’s 2026 filing.
Lawsuits and bankruptcy
| Lawsuits and regulatory actions | Yes. The filing describes past or pending cases involving the franchisor, its affiliates or its executives on page 12. |
|---|---|
| Bankruptcy | None. The filing says no bankruptcy has to be disclosed. |
Franchisors must disclose lawsuits and bankruptcies involving the company, its parents and affiliates, and its executives. Many cases are routine disputes with franchisees over fees or contracts; read the descriptions in the filing and ask current owners about anything that worries you.
Source: Soft Pretzel Franchise Systems, Inc, 2026 filing, litigation on page 12, bankruptcy on page 12
Philly Pretzel Factory filings
The figures on this page come from Soft Pretzel Franchise Systems, Inc’s 2026 filing, issued April 30, 2026, on record with the NASAA Electronic Filing Depository.
| Filing | Issued | Registry | On this page |
|---|---|---|---|
| 2026 filing | April 30, 2026 | NASAA depository | Costs, fees and locations, 2023–2025 |
Each link opens the filing as a PDF. See the newest filings across all brands.
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