Wetzel’s Pretzels Franchise Cost & 2026 FDD Data
56/100
Second tier
56 this brand51 Quick-Service Restaurants medianlikely 52–60 (high confidence)
Higher is better · an editorial assessment, not investment advice
#1,232 of 3,068 graded brands
Why a B: Helped by financial health, unit economics, unit growth, scale, legal record and transparency. See all six factors
- Total investment
- $189K – $725K
- Avg gross sales
- $813K
- “All Franchised WETZEL'S PRETZELS Bakeries (Table 1)”, 295 outlets; not profit
- SBA charge-off
- 17.4%
1 in 6 SBA 7(a) loans to Wetzel’s Pretzels owners charged off (16 of 92 resolved loans, approved since FY1991); Quick-Service Restaurants median 17.6%. Loans approved FY2014–FY2017: 2 of 30 resolved loans charged off (6.7%); newer loans have not had time to default, so this is not a trend.
Data from the FDD filing + SBA 7(a) records. Analysis by FranchiseVerdict · Methodology · Website · Report an error · Franchisor? Claim this listing
Wetzel's Pretzels is a snack franchise serving hand-rolled soft pretzels, dipping sauces, and lemonade. Franchisees run kiosks and small storefronts in malls, airports, and high-traffic venues, managing baking and quick service.
FranchiseVerdict summary · 2026 FDD
Per the 2026 FDD, a Wetzel’s Pretzels franchise requires a total initial investment of $189K – $725K, including a $20K – $40K franchise fee. Once open, the ongoing royalty is 7.0%. Per the 2026 FDD, average gross sales were $813K (Item 19 group “All Franchised WETZEL'S PRETZELS Bakeries (Table 1)”, 295 outlets; gross sales, not profit). SBA 7(a) loans show a 17.4% charge-off rate on 92 resolved loans. Verdict grade: B (Second tier), an editorial assessment, not investment advice.
Sources: 2026 FDD · SBA 7(a) loan records (FOIA) · What one unit could make and lose →
Sources, dates and evidence
FDD issued: · Data extracted: · Last cited check: · Staleness risk: low (issued within the last 12 months)
Evidence for the headline figures: strong✓ Investment (Item 7)✓ Item 19 status✓ Units and owners (Item 20)✓ SBA loan coverage✓ Litigation (Item 3)✓ Financial statements (Item 21)✓ Franchisor identityhow this is scored8 of 8 headline figures on this page cite a page of the filing.
Overview
Quick verdict · vs Quick-Service Restaurants median
Top edge: green = better than the Quick-Service Restaurants median by more than 10%, red = worse by more than 10%, gray = within 10% or no benchmark. Source: FDD filings + SBA 7(a).
Data from public FDD filings and SBA records. Methodology
Bottom line
- RETURNSAverage gross sales of $813K/year (outlet median $670K; Item 19 group “All Franchised WETZEL'S PRETZELS Bakeries (Table 1)”, 295 outlets; gross sales, not profit), with an estimated 23% cash-on-cash return (based on Net Operating Income).
- GROWTHIn the latest Item 20 year, the number of franchised outlets grew by 33 (48 opened, 15 closed).
- LEGAL18 litigation matters disclosed in Item 3, higher than typical. Of the 15 listed on this page, 2 name the franchisor or its predecessor, 12 its parent or affiliates, 1 an officer personally. Pending claims are allegations, not findings.
AT STAKEOne unit at the Item 7 midpoint: $59K a year in payments on assumed SBA 7(a)-style terms.You put in about $91K of your own cash and personally guarantee a $366K loan. Assumptions are labeled in Sales; not investment advice.See what one unit could make and lose
Things to check before you sign (3)
- The franchisor keeps the right to compete inside your territory (Item 12, territory).
- You waive a jury trial in disputes with the franchisor (Item 17, renewal, termination and disputes).
- The franchisor receives rebates or payments from suppliers you buy from (Item 8, required suppliers).
SBA charge-off rate 17.4%, near the 17.6% category median; the score uses fixed ranges, not the median, and takes 6 points for it (see Why a B). Checked and clear: no auditor doubt that the franchisor can keep operating, no net loss of franchised outlets in the latest Item 20 years, no pending lawsuit naming the franchisor, no rule that the owner must run it personally and the full filing on file, and an Item 19 average from 295 units.
What to do next
Step 1: Read the FDD itself.
Free: read the 2026 filing on this site, page by page. The franchisor must also give you its current FDD at least 14 days before you sign or pay. Or look it up in a state registry (Wisconsin, Minnesota, California). What to read first.
Step 2: Talk to current and former owners.
Free: Item 20 of the FDD lists every current owner and those who left last year, most with a phone number. Questions to ask.
Shortcut: the Wetzel’s Pretzels owner list as a CSV, in the Contacts section.
Step 3: Talk to an SBA lender.
Free: the SBA's Lender Match, or the lenders already lending to this brand in the SBA section. Ask what you would personally guarantee and what the monthly payment would be. If you plan to use retirement savings, ask a CPA about the rules for that first.
Step 4: Have a franchise attorney review the FDD and agreement.
Free: your state bar's lawyer referral service can name franchise lawyers, and many offer a short first consultation. Bring the checks listed above.
Research steps, not investment or legal advice.
Can you afford it, and what does the money buy?
Entry cost (the Item 7 midpoint) is near the Quick-Service Restaurants median ($487K).
Source: FDD 2026 · Items 5–7 (fees and startup costs)
Do you qualify? The filing states no minimum net worth or liquid capital. Ask Wetzel's Pretzels, LLC (Item 1: 35 Hugus Alley, Suite 300, Pasadena, CA 91103) and your lender what they require, and keep living costs for the first year outside the deal.
Full Item 7 breakdown18 line items
Initial investment breakdown
| Line item | Low | High | |
|---|---|---|---|
| Initial Franchise Feenot refundable | $20K | $40K | |
| Lease Review Feenot refundable | $3.5K | $7K | |
| Business Premisesnot refundable | $5K | $25K | |
| Leasehold Improvementsnot refundable | $50K | $400K | |
| Food Preparation Equipmentnot refundable | $53K | $99K | |
| Utility Deposits, Licenses, Permits | $1K | $15K | |
| Insurance | $500 | $3K | |
| Signs & Menu Boardsnot refundable | $5K | $20K | |
| Digital Display Boardsnot refundable | $5K | $8K | |
| POS Systemnot refundable | $500 | $1K | |
| Initial Inventory & Smallwaresnot refundable | $7.5K | $12K | |
| Training Fee for Additional Traineenot refundable | $0 | $750 | |
| Training Expensesnot refundable | $1K | $5K | |
| Grand Opening Advertisingnot refundable | $500 | $5K | |
| Office Equipment & Suppliesnot refundable | $500 | $2.5K | |
| Professional Feesnot refundable | $1K | $3.2K | |
| Architect, Engineers & Construction Managernot refundable | $9.5K | $23.5K | |
| Additional Funds - first 90 daysnot refundable | $25K | $55.5K | |
| Total initial investment | $189K | $725K |
Line items extracted from FDD Item 7. Ranges reflect the franchisor's stated low and high per line. The total row is the total as printed in Item 7. Actual costs may fall outside this range depending on market and build-out scope.
Item 6 · what you pay once you are open
Ongoing fees
Payback period4.4 yrs · from FDD / Item 19
| Fee | Amount |
|---|---|
| Royalty | 7.0% of gross revenues |
Marketing / ad fundThe filing's detailBrand-wide marketing pool. 1% of Adjusted Gross Revenue for Non-Street-Front Bakery; 2% for Non-Street-Front Bakery in Walmart; 3% for Street-Front Bakery; may increase up to 3%/4%/5% respectively upon 30 days notice | 1.0% of gross revenues |
| Technology feeCurrently $29.50 weekly; may charge up to approximately $300 monthly; may increase as necessary | $29.50/month |
| Transfer feeItem 17 lists $40,000 | $20,000 |
| Renewal fee | $50 |
| Total fee loadabove the Quick-Service Restaurants median of 7.0% (heavy) | 8.0% of sales |
What do units actually make?
Average gross sales are 14% below the Quick-Service Restaurants median ($950K).
Source: FDD 2026 · Item 19 (sales and earnings)
Items 6 (other fees), 7 (startup costs) and 19 (sales and earnings) · assumptions labeled
What you could make and lose: one unit
What one Wetzel’s Pretzels unit would ask of you, from the filing's Item 7 total and labeled assumptions.
Average gross sales are $813K (FDD Item 19, p.82), and the royalty and ad fund take about $65K of that a year (Item 6). This brand's Item 19 prints cost or operating-income lines that are not on this page yet. Read them in Item 19 and enter them here. So this box does not estimate a profit. To cover the loan payment alone, one unit has to clear $59K a year after its food, labor, rent and other costs and the franchisor's fees.
How these figures are worked out
- Loan (assumption): 80% of the $457K Item 7 midpoint is a $366K loan, paid over 10 years at 10.5%: $59K a year. SBA 7(a)-style terms on a long-term rate; your lender sets yours. Wetzel’s Pretzels' past SBA 7(a) loans averaged 7.3% at approval; 7(a) rates move with the prime rate, so 10.5% is a current-rate assumption, not this brand's history.
What you put at risk
Your own cash in: about $91K Assumption (the part the loan does not cover of the $457K Item 7 midpoint), plus whatever anything Item 7 leaves out (its notes say what). The loan is $366K.
Personal guarantee. SBA 7(a) loans require a personal guarantee from anyone who owns 20% or more of the business. If the unit cannot pay, the lender can collect from you personally, which can include your savings and your home. The worst case is losing the cash you put in and still owing the rest of the loan.
Gross sales are not profit, and none of these figures is take-home pay until tax and every operating cost are paid. The assumptions are ours, not the filing's. Not investment advice.
Returns modelOne unit · several units · editable
FDD-reported earnings
The FDD reports $191K as Net Operating Income. This is a disclosed figure, not our estimate: we publish no modelled profit for Wetzel’s Pretzels.
One unit
One unit: what is left after the loan payment
Gross sales, minus the franchisor's fees and the operating costs, is the unit's EBITDA (earnings before interest, taxes, depreciation and amortization). Minus an assumed loan payment, that is what is left for you, before tax. Gross sales are not profit.
This brand's Item 19 prints cost or operating-income lines that are not on this page yet. Read them in Item 19 and enter them here. Invested capital is the Item 7 total, which already includes its working-capital (additional funds) line.
Returns model · one unit
What would one Wetzel’s Pretzels unit leave you each year after the loan payment?
Item 19: $813,125 average for 295 outlets (All Franchised WETZEL'S PRETZELS Bakeries (Table 1)). Use a figure for outlets like yours if yours differ.
Gross sales, not profit: the costs below decide what is left.
Item 6, as stored, a year. A fixed fee, so it comes off EBITDA as dollars, not a share of sales.
This brand's Item 19 prints cost or operating-income lines that are not on this page yet. Read them in Item 19 and enter them here.
Illustrative category typicals, not sourced to any filing, survey or sample. Replace them with figures from franchisee validation calls before you rely on the output.
Item 7 midpoint of $189K to $725K
Item 7's $25K to $56K additional funds are already in the total
Left after the loan payment · per year
The unit's EBITDA minus the assumed loan payment. Before tax, depreciation and any cost your inputs leave out (insurance, accounting and legal, licenses, technology fees): not take-home pay.
Gross sales are not profit. Neither the filing nor a stated assumption on this page supplies COGS, labor, rent / occupancy and other operating costs. Enter your own (a lease quote, owner calls) and the model runs on it.
Loan of $366K at 10.5% over 10 years, an assumption, not a quote. Return and payback are before tax, depreciation and the costs above. The loan usually needs your personal guarantee.
Buying several existing units? The acquisition scenario
Buying several units
What buying a few existing units could return
Prices an existing operator of a few units off the single-unit EBITDA above, after shared services, and finances it with an SBA 7(a) loan, a conventional loan and a seller note. It shows the yearly return on your cash (IRR), whether year-1 earnings cover the loan payments (DSCR) and how the price is paid for. It starts at 5 units; every deal term is an assumption you can change, and none is from the FDD.
Not modelled yet
Gross sales are not profit. Neither the filing nor a stated assumption on this page supplies COGS, labor, rent / occupancy and other operating costs. Enter your own (a lease quote, owner calls) and the model runs on it.
This scenario starts from a per-unit EBITDA. Fill in the operating costs in the one-unit model above and it runs on that figure, or take it to the full ROI workbench, where the multi-unit and acquisition models accept your own per-unit economics.
These models are for research and scenario planning only. Not investment advice. Actual results depend on your specific location, management, and market conditions. Consult a franchise attorney and accountant before signing any franchise agreement.
Item 19 · Source: 2026 FDD · filed by Wetzel's Pretzels, LLC
Financial performance
- Avg net operating income
- $191K
- The filing's own Net Operating Income line (Item 19), as it defines it; not comparable with other brands' figures
- Cash-on-cash
- 23.0%
- Based on Net Operating Income / investment midpoint
- Range (low → high)
- $72K→$2.8M2026 FDD Item 19, p.82
- Cohort dispersion (min → max)
- Transparency
- 9 / 10
- vs category median 4 / 10 (more detail than most)
Percentile ranks within Quick-Service Restaurants
Each rank is among the Quick-Service Restaurants brands that report that figure (the count is under each bar).
Item 19 · 8 groups · FDD p.85
Item 19 by group
The 2026 filing reports gross sales for 8 groups of outlets. The headline average on this page is the “All Franchised WETZEL'S PRETZELS Bakeries (Table 1)” group (295).
| Group | n | Average | Median |
|---|---|---|---|
| All Franchised WETZEL'S PRETZELS Bakeries (Table 1)headline above | 295 | $813K | $670K |
| Bakeries in Entertainment Center locations | 6 | $938K | $657K |
| Bakeries in Outlet Malls | 37 | $988K | $904K |
| Bakeries in Regional Malls | 165 | $950K | $828K |
| Bakeries in NTO/Transit Locations | 24 | $563K | $402K |
| Bakeries in Walmart Store Locations | 42 | $517K | $465K |
| Concession Trucks or Trailers | 21 | $274K | $205K |
| Regional/Outlet Mall Benchmark Stores - Net Sales/Operating Income (Table 3A/3B) | 147 | $1.1M | $938K |
Costs and net operating income, as the filing prints them
The filing's “Net Operating Income” is before owner or manager pay; after royalty, ad fund and rent. The filing does not say whether it is after debt service and depreciation. Gross sales are not profit, and this line is not take-home pay: what it leaves out still has to be paid.
The cost lines for 1 groups (FDD p.85)
| Line, as the filing names it | Regional/Outlet Mall Benchmark Stores - Net Sales/Operating Income (Table 3A/3B)n=147 |
|---|---|
| Average gross sales | $1.1M |
| Costs of Goods Sold | 19.20%$207K |
| Gross Profit | 80.80%$871K |
| Labor | 28.90%$312K |
| Rent | 18.60%$200K |
| Other Expenses | 15.60%$168K |
| Net Operating Income | 17.70%$191K |
vs Quick-Service Restaurants medians
How Wetzel’s Pretzels compares
Category median of published Quick-Service Restaurants brands that report the figure; the middle half spans the 25th to 75th percentile and n counts the brands behind it. Medians are used because a few very large systems pull an average far from the typical brand. Revenue is disclosed gross sales, not profit.
Who are you contracting with?
Wetzel's Pretzels, LLC, owned by MTY Franchising USA, Inc.
Item 1 (the franchisor) · who you're contracting with
The franchisor
Corporate structure & franchisor financials
- Legal entity
- Wetzel's Pretzels, LLC
- Parent company
- MTY Franchising USA, Inc.
- FDD Item 1, page 10 of the 2026 FDD
- Ultimate parent
- MTY Food Group, Inc.
- FDD Item 1, page 10 of the 2026 FDD
- CEO title
- Chief Executive Officer of MTY (parent company)
- Eric Lefebvre
- Incorporated in
- California
- HQ
- 35 Hugus Alley, Suite 300, Pasadena, CA 91103
- Auditor
- PricewaterhouseCoopers LLP
- Audited financials
- Franchisor revenue
- $604.2M
- latest fiscal year in the 2026 FDD; $597.5M the year before
Same owner · FDD Item 1, page 10
27 other brands on this site name MTY Food Group, Inc. as parent or ultimate parent in their own FDD.
- Baja Fresh Mexican Grill (grade B)
- Barrio Queen (grade B)
- Blimpie (grade D)
- Chicken Strips and Dips (grade C)
- Cold Stone Creamery (grade C)
- Extreme Pita (grade D)
- Famous Dave’s (grade B)
- Ginger Sushi + Poke Shop (grade C)
- Grabbagreen (grade B)
- Great Steak (grade C)
- Kahala Coffee Traders (grade B)
- La Diperie (grade B)
- Manchu WOK (grade B)
- Maui Wowi (grade D)
- Mucho Burrito (grade B)
- NrGize Lifestyle Cafe (grade B)
- Papa Murphy's (grade B)
- Pinkberry (grade B)
- Planet Smoothie (grade C)
- Samurai Sam’s Teriyaki Grill (grade D)
- Sauce Pizza / Wine (grade C)
- Surf City Squeeze (grade D)
- TacoTime (grade C)
- Thai Express (grade C)
- +3 more
Portfolio: MTY Food Group
Grouped by the owner's name as each filing prints it (this page: the 2026 FDD). Spelling variants of the same group may be listed apart; a brand is never grouped with an owner its filing does not name.
Overview
About
- CEO
- Eric Lefebvre
- States and territories listed
- 32
- registered or offered in, as the filing lists them (DC and territories included); not where units may open
Is the system healthy?
+76 franchised outlets over the two years to 2025 (347 to 423, +21.9% in total, +10.4% a year compounded).
Source: FDD 2026 · Item 20 (outlets opened, closed and transferred)
Item 20 (outlet counts) · unit dynamics
The growth chart
- Company-owned
- 35
- Corporate units in the system
- % franchised
- 92%
- vs corporate-owned
Last fiscal year · Item 20 rates and pipeline
- Signed, not yet open
- 96
- 0.21 per open outlet · Item 20 Table 5
- Projected new
- 63
- Franchisor's next-year forecast
Item 20 · franchised units at year end
Franchised units rose from 347 in 2023 to 423 in 2025
Axis does not start at zero.
Source and method
Item 20 (outlet counts) outlets · 25 states
Where current outlets are
States with at least one current outlet in the Item 20 list the franchisor prints. Former owners are not counted, and this is not a list of where the franchisor may sell new units.
Current outlets (count on the tile) · 25 statesNo current outlet
182 current outlets in 25 states: the 182 on the owner list, of 423 franchised at year end (Item 20). 12 former owners (terminated, transferred, not renewed or otherwise left) listed separately.
Counts only, from the list the franchisor prints in Item 20. The contact details are for your own due diligence and are not shown here.
Registration-law states
States whose laws require the FDD to be filed, as the filing lists them; not where units may open.
- California
- Hawaii
- Illinois
- Indiana
- New York
The states this FDD names in its state registration list or state addenda. It is not a count of where units operate.
Government records
SBA loan data
Lenders charged off 17.4% of 92 resolved SBA 7(a) loans, below the 17.6% category median. 7(a) is the SBA's main small-business loan; a resolved loan was paid in full or charged off.
- Loans on file
- 138
- SBA 7(a) loans matched to this brand, incl. those still being repaid
- Loan volume
- $43.7M
- Average loan
- $316K
- loan volume divided by loans
- Charge-off rate
- 17.4%
- 16 of 92 resolved loans
- Paid in full
- 82.6%
- of resolved loans
- Charge-off, loans approved FY2014–FY2017
- 6.7%
- 2 of 30 resolved loans; newer loans have not had time to default, so this is not a trend
- Lenders
- 51
- Average interest rate
- 7.3%
- Jobs reported
- 1,567
- Lender concentration
- 10%
- top lender's share
Cumulative: every 7(a) loan matched to this brand in the SBA’s FOIA files, approved FY1991 onward. Historical lending data, not predictive of future performance. How SBA charge-off rates are calculated
Benchmark: the median Quick-Service Restaurants brand charges off 17.6% (175 brands with a published rate, same cumulative window and source). This brand is near that median.
Borrower mix: of the 46 loans with a recorded business age, 30 (65%) went to startups or businesses under two years old and 16 (35%) to established businesses or ownership changes.
The approval-year breakdown covers 80 of the 92 resolved loans and 15 of the 16 charge-offs (FY2000 to FY2017).
SBA 7(a) · charge-off rate by approval year
Wetzel’s Pretzels charge-off rate by loan approval year
Only 1 of these 15 approval years has 10 or more resolved loans, too few to draw a trend. Each year’s numbers are in the table below.
Show the numbers by year
| Year | Resolved | Charged off | Rate |
|---|---|---|---|
| 2000 | 6 | 2 | Too few |
| 2001 | 3 | 0 | Too few |
| 2004 | 7 | 1 | Too few |
| 2005 | 3 | 1 | Too few |
| 2006 | 4 | 2 | Too few |
| 2007 | 6 | 5 | Too few |
| 2008 | 7 | 1 | Too few |
| 2009 | 4 | 1 | Too few |
| 2010 | 3 | 0 | Too few |
| 2011 | 3 | 0 | Too few |
| 2013 | 4 | 0 | Too few |
| 2014 | 8 | 0 | Too few |
| 2015 | 10 | 0 | 0.0% |
| 2016 | 6 | 0 | Too few |
| 2017 | 6 | 2 | Too few |
Source and method
Explore lender portfolios on Bank Reports or regional data on State Reports.
Full SBA lending reportlenders · charge-off rate · trend
Lender network · SBA 7(a)
SBA Lending Report
Lender, state and yearly detail for Wetzel’s Pretzels from SBA 7(a) FOIA loan records.
- Principal charged off (% of dollars)
- 6.0%
- Average charge-off
- $163K
- across 16 charged-off loans
- Average SBA guarantee
- 72%
- Average interest rate
- 7.3%
- Lender concentration
- 10%
- Jobs reported
- 1,567
Top 10 SBA lenders by loan count
| Loans | Volume | Charge-off |
|---|---|---|
| PCB Bank | ||
| 14 | $3.5M | Too few8 resolved |
| Popular Bank | ||
| 12 | $2.0M | 58.3%12 resolved |
| Readycap Lending, LLC | ||
| 11 | $1.9M | 45.5%11 resolved |
| First Bank of the Lake | ||
| 8 | $3.5M | Too few0 resolved |
| JPMorgan Chase Bank, National Association | ||
| 7 | $885K | Too few7 resolved |
| Open Bank | ||
| 7 | $2.9M | Too few7 resolved |
| Bank of Hope | ||
| 5 | $785K | Too few5 resolved |
| East West Bank | ||
| 5 | $1.0M | Too few5 resolved |
| Mountain America FCU | ||
| 5 | $1.5M | Too few2 resolved |
| United Business Bank | ||
| 4 | $2.3M | Too few0 resolved |
A lender’s rate counts only its resolved loans, the loans that have finished (paid in full or charged off); a 0.0% often means few of its loans have finished. Under 10 resolved loans, the rate reads “Too few”.
Charge-off rate by state (top 10 by loans)
| State | Loans | Charged off | Rate |
|---|---|---|---|
| CA California | 70 | 5 | 10.2%49 resolved |
| TX Texas | 17 | 3 | 23.1%13 resolved |
| NV Nevada | 7 | 0 | Too few6 resolved |
| NJ New Jersey | 6 | 0 | Too few3 resolved |
| TN Tennessee | 4 | 1 | Too few3 resolved |
| FL Florida | 3 | 2 | Too few2 resolved |
| PR Puerto Rico | 3 | 0 | Too few1 resolved |
| UT Utah | 3 | 0 | Too few0 resolved |
| AZ Arizona | 2 | 0 | Too few2 resolved |
| GA Georgia | 2 | 0 | Too few1 resolved |
Rate: charged-off loans over resolved loans (paid in full plus charged off), shown from 10 resolved loans. "Too few": under 10 resolved. The Loans column counts every approval in the window, including loans still being repaid.
SBA 7(a) loans approved per year
Borrower profile
The SBA's own business-age labels (4)
Source: SBA 7(a) FOIA loan-level data, matched to the brand by FranchiseVerdict.
What are the risks?
SBA loans here charge off near the Quick-Service Restaurants median of 17.6% (175 brands) (17.4% on 92 resolved loans).
Source: SBA 7(a) FOIA · FDD Items 3, 21
Verdict grade + FDD Items 3 (litigation), 4 (bankruptcy), 8 (required suppliers), 16 (what you may sell), 21 (audited financials)
Risk and legal
Grade B: Second tier, 56/100 (category median 51); the full grade is at the top of the page.
How the grade is built
Parent-level financials (MTY/Kahala) are strong at $271M net worth and $30.7M net income across 458 units. The 13 disclosed cases are largely historical affiliate-brand matters, not active franchisor litigation. Financials are parent-level, so brand-specific equity is not disclosed.
Why a B, factor by factor
- Financial health HelpsAudited financials; no going-concern doubt; statements are the parent's, so this stays near neutral
- Unit economics HelpsAvg gross sales $813K on a $457K investment midpoint, 1.8x (gross sales, not profit); an Item 19 earnings figure of $191K also counts
- Unit growth Helps+76 franchised outlets over the two years to 2025 (347 to 423, +21.9% in total, +10.4% a year compounded); turnover 3.3%
- Scale HelpsNo outlet open yet
- Legal Helps2 matters naming the franchisor among the Item 3 matters we list (0.4 per 100 outlets)
- Transparency HelpsItem 19 discloses financial performance; audited financials
- Adjustments after the six dimensions (-39 points)SBA loan record: the SBA charge-off rate (17.4% on 92 resolved loans) is between 10% and 20%, a range the score counts against a brand, so it took 6 points off. The score uses fixed ranges, not the category median, so a rate below its category median can still cost points.Score limits: a ceiling the method sets for specific risks (such as a very high SBA charge-off rate, high turnover or an auditor's going-concern doubt) took 33 points off.
From the six scored dimensions, an editorial assessment, not investment advice. How the score is built
Litigation (Item 3)
Subject: the franchisor is a named party (defendant).
13 distinct cases disclosed under Item 3, largely historical litigation/arbitration involving MTY/Kahala affiliate brands (Extreme Pita, Kahala Franchising, sweetFrog, Famous Dave's, Village Inn/RAI, Papa Murphy's) and Wetzel's Pretzels itself (Pretzelsdallas1, Inc. v. Wetzel's Pretzels, LLC, AAA Case No. 01-19-0002-9326, settled 2021), plus 2 concluded state administrative actions (Maryland, Virginia) and 3 pending Kahala Franchising lawsuits against franchisees filed in FY2025.
Bankruptcy (Item 4)
None disclosed
Audited financials (Item 21)
Yes · PricewaterhouseCoopers LLP
Franchisor revenue (Item 21)
The revenue figures are in the Franchisor tab, under The franchisor.
Franchisor entity revenue (not unit-level)
MTY USA and subsidiaries derived $47,054,607 in revenue from product/service sales and vendor allowances (7.8% of $604,239,000 total consolidated revenue) for FY ending Nov 30, 2025; of that, $29,352,205 came from vendor marketing/rebate contributions
ⓘ These are the parent company's consolidated financials (the parent guarantees the franchisor), not this brand's standalone results; the figure reflects the whole corporate group, not this brand alone.
Supplier relationship · Items 8 & 16
Ask what the franchisor earns on the supplies it sells you or the rebates it takes (Item 8).
- Franchisor sells you products: No
- Franchisor takes supplier rebates: Yes
- Must buy proprietary products: No
- Restricted to system-approved products: No
- Can negotiate own supplier terms: No
Notes from the filing review · not the score inputs
- 01MINOR13 cases but largely historical/affiliate MTY-Kahala matters
- 02MINORParent-level financials: $271M net worth, $30.7M net income
- 03MINORStrong 21.9% unit growth, 458 units
- 04MEDAudited financials, Item 19 disclosed
Severity inferred from the FDD text · not a regulatory classification
Litigation case detail18 matters · Item 3
Litigation cases
The franchisor and its predecessor
Concluded (2)
Pretzelsdallas1, Inc. v. Wetzel’s Pretzels, LLC
concludedBrought by a franchisee · filed 2019-09-11 · American Arbitration Association, Los Angeles, California · 01-19-0002-9326
“… Los Angeles, California; AAA Case No.01-19-0002-9326. On or about July 19, 2017, we entered into a franchise agreement with”Page 26 of the 2026 FDD, Item 3
Outcome: “On September 24, 2021, the parties entered into a settlement agreement, in which a mutual release of all claims was agreed to, and Respondent/Counter Claimant paid”
New York Department of Law claim against Blimpie Associates, Ltd. and Joseph Dornbush
concludedBlimpie Associates, Ltd. and Joseph Dornbush · New York Department of Law
“In May 1992, Blimpie Associates, Ltd. (“Blimpie”) and Joseph Dornbush (formerly the President of Blimpie) (collectively “Respondents”) responded to a claim by the New York”Page 28 of the 2026 FDD, Item 3
Outcome: “Respondents paid the $18,000 in May 1992 and executed the consent judgment on August 25, 1992. Concluded State Administrative Actions Involving Maui Wowi Franchising, Inc.,”
Parent, affiliates, master franchisor and subfranchisor
Concluded (12)
Desert Ribs, L.L.C., Famous Gracie, L.L.C., Famous Freddie, L.L.C., Famous George, L.L.C. and Famous Charlie, L.L.C. v. Famous Dave’s of America, Inc.
concludedBrought by a franchisee · Famous Dave’s of America, Inc. · filed 2016-03-14 · American Arbitration Association, Minneapolis, Minnesota · 01 16 0000 8549
“… American Arbitration”Page 24 of the 2026 FDD, Item 3
Outcome: “Claimants voluntarily dismissed their remaining claims against Famous Dave’s and entered into a confidential settlement agreement and mutual release (the “Settlement”
SFF, L.L.C. v. Carmel Village Yogurt Company L.L.C.
concludedBrought by the franchisor · SFF, L.L.C., successor in interest to SweetFrog Enterprises, L.L.C. · filed 2016-08-29 · City of Richmond, Virginia Circuit Court · CL16-3927
“… City of Richmond, Virginia Circuit Court; Case No. CL16-3927. On August 29, 2016, SFF, L.L.C. (“Plaintiff”) filed a lawsuit”Page 23 of the 2026 FDD, Item 3
Outcome: “The case was dismissed with prejudice on December 15, 2016. Concluded Arbitration and Litigation Involving Famous Dave’s of America, Inc. Desert Ribs, L.L.C., Famous Gracie,” (page 24)
Famous Dave’s of America, Inc. v. Allan Gantes; John Gantes; M Mart 1, LLC; Kurt Schneiter; Shoreline FD Investors, L.L.C.; SR El Centro FD , Inc. SR Long Beach FD, Inc.; SR Palmdale FD, Inc.; SR Restaurant Holdings Group, Inc.; SR Simi Valley FD, Inc.; SR Tracey FD, Inc.;
concludedBrought by the franchisor · Famous Dave’s of America, Inc. · filed 2015-07-24 · Superior Court of the State of California, County of Los Angeles, Central Division · BC589329
“Famous Dave’s of America, Inc. v. Allan Gantes; John Gantes; M Mart 1, LLC; Kurt Schneiter; Shoreline FD Investors, L.L.C.; SR El Centro FD , Inc. SR Long Beach FD, Inc.; SR”Page 24 of the 2026 FDD, Item 3
Outcome: “The Request for Dismissal with prejudice was entered on November 26, 2018. Concluded Arbitration and Litigation Involving VI BrandCo, L.L.C. In re: Restaurants Acquisition I,” (page 25)
KOHO, Inc. v. Kahala Franchising, L.L.C.
concludedKahala Franchising, L.L.C. · filed 2015-02-17 · Superior Court of the State of California for the County of Los Angeles · BC572565
“… Superior Court of the State of California for the County of Los Angeles; Case No.: BC572565. On or about February 17, 2015, Koho, Inc.”Page 22 of the 2026 FDD, Item 3
Outcome: “On June 19, 2017, the parties entered into a settlement agreement whereby Kahala repurchased Koho’s Area Developer territory for the sum of $75,000 and forgave the remaining” (page 23)
Purav Enterprises, L.L.C., Balwant Bahia, and Paramjit Samra v. The Extreme Pita Franchising USA, Inc., EP Development, Inc., and Feisal Ramjee
concludedBrought by a franchisee · The Extreme Pita Franchising USA, Inc., predecessor in interest to MTY Franchising USA, Inc. · filed 2015-06-22 · Superior Court of the State of Washington for King County · 15-2-15120-7
“… Superior Court of the State of”Page 22 of the 2026 FDD, Item 3
Outcome: “The parties entered into a settlement agreement on March 11, 2016, in which Defendants paid Plaintiffs the sum of $20,000. The matter was dismissed on March 16, 2016. Concluded”
Rob & Bud’s Pizza, LLC v. Papa Murphy’s International, Inc. and Papa Murphy’s International, LLC
concludedBrought by a franchisee · Papa Murphy’s International LLC · filed 2015-04-17 · United States District Court for the Western District of Washington · 5:15-cv-05090-TLB
“… United States District Court for the Western District of Washington, Case No.”Page 27 of the 2026 FDD, Item 3
Outcome: “The case was dismissed with prejudice as part of a settlement with plaintiff in this case and the LMP case under which Papa Murphy’s purchased plaintiff’s nine Papa Murphy’s”
DTD Pizza LLC, Brian Watson, Alton Spears, LMP Enterprises LLC, Pizza Enterprises LLC, Alan and Denise Barnett, DOB Enterprises, Inc., Douglas and Lesia Billing, Rob & Bud’s Pizza, Robert J. Dickerson Trust UA, Rob Dickerson, 4LM Enterprises, Inc., Jana and Randell Liles, Ben and Kim Mayfield, SEAMS
concludedPapa Murphy’s International LLC · filed 2014-04-01 · Washington Superior Court, Clark County · 14-2-00904-0 (consolidated with 14-2-01743-3)
“DTD Pizza LLC, Brian Watson, Alton Spears, LMP Enterprises LLC, Pizza Enterprises LLC, Alan and Denise Barnett, DOB Enterprises, Inc., Douglas and Lesia Billing, Rob & Bud's”Page 26 of the 2026 FDD, Item 3
Outcome: “Each of the plaintiff groups entered into settlements with Papa Murphy’s in which they dismissed all of their claims against defendants with prejudice and the action was” (page 27)
In the Matter of Maui Wowi Franchising, Inc. (2005)
concludedGovernment or regulatory action · Maui Wowi Franchising, Inc., predecessor in interest to Kahala Franchising, L.L.C. · Before the Securities Commissioner of Maryland · 2005-0651
“In the Matter of Maui Wowi Franchising, Inc., Before the Securities Commissioner of Maryland, Case No. 2005-0651. On November 11, 2005, Maui Wowi Franchising, Inc., the”Page 28 of the 2026 FDD, Item 3
Outcome: “At this time, MWF is in full compliance with the Consent Order. In the Matter of Maui Wowi Franchising, Inc., Before the Securities Commissioner of Maryland, Case No. 2007-0194.” (page 29)
In the Matter of Maui Wowi Franchising, Inc. (2007)
concludedGovernment or regulatory action · Maui Wowi Franchising, Inc., predecessor in interest to Kahala Franchising, L.L.C. · Before the Securities Commissioner of Maryland · 2007-0194
“In the Matter of Maui Wowi Franchising, Inc., Before the Securities Commissioner of Maryland, Case No. 2007-0194. On September 12, 2007, “MWF” entered into a Consent Order with”Page 29 of the 2026 FDD, Item 3
Outcome: “MWF fully complied with the Amended Consent Order, and subsequently employed a compliance monitor and was granted registration in the State of Maryland. Concluded State”
In the Matter of SweetFrog Enterprises, L.L.C. f.k.a. Imagination Enterprises, Inc., d/b/a Sweet Frog
concludedGovernment or regulatory action · SweetFrog Enterprises, L.L.C., predecessor of SFF, L.L.C. · Administrative Proceeding Before the Securities Commissioner of Maryland · 2012-0055
“… Administrative Proceeding Before the Securities Commissioner of Maryland,”Page 28 of the 2026 FDD, Item 3
Outcome: “On August 29, 2012, the Commissioner and SFE agreed to enter into a consent order whereby SFE, without admitting or denying any violations of the law, agreed to: (i) immediately”
State of Maryland Determination (Triune, LLC)
concludedGovernment or regulatory action · Triune, LLC, a predecessor of BF Acquisition Holdings, L.L.C. · Office of the Attorney General of Maryland · 2012-0073
“State of Maryland Determination; Case Number 2012-0073. In February 2012, the State of Maryland alleged that during the period January 1, 2009 to November 26, 2009, Triune, LLC”Page 29 of the 2026 FDD, Item 3
Outcome: “in September 2012, Triune voluntarily entered into a Consent Order with the Office of the Attorney General of Maryland and agreed to: (i) not violate the Maryland Law in the” (page 30)
State of Virginia Determination (Triune, LLC)
concludedTriune, LLC, a predecessor of BF Acquisition Holdings, L.L.C. · Division of Securities and Retail Franchising of the State Corporation Commission · SEC-2012-00027
“State of Virginia Determination; Case Number SEC-2012-00027. In February 2012, the Division of Securities and Retail Franchising of the State Corporation Commission (the”Page 30 of the 2026 FDD, Item 3
Outcome: “on November 26, 2012, Triune voluntarily entered into a Settlement Order with the Commission and agreed: (i) to not violate the Virginia Act in the future; (ii) to pay Virginia”
Officers and directors (individuals, not the company)
Concluded (1)
In re: Restaurants Acquisition I, LLC (Giuliano vs. W. Craig Barber et. al.
concludedBrought by a third party · W. Craig Barber and Robert Langford · filed 2017-12-01 · United States Bankruptcy Court for the District of Delaware · 15-12406 (KG)
“… United States Bankruptcy Court for the District of Delaware on December 2, 2015 (Case No. 15-12406”Page 25 of the 2026 FDD, Item 3
Outcome: “and estate separate payments totaling $150,000 each over a three-year period. Concluded Arbitration and Litigation Involving Wetzel’s Pretzels, L.L.C. Pretzelsdallas1, Inc. v.” (page 26)
This list shows 15 of the 18 matters Item 3 discloses; the rest are in the filing.
Item 3 lists the litigation the franchisor must disclose; a matter against a parent, an affiliate or a named officer is not a matter against the franchisor, and pending claims are allegations, not findings.
What are you signing up for?
Ongoing fees run about 8.0% of sales (royalty + ad fund), before your own operating costs.
Source: FDD 2026 · Items 11, 12, 17
FDD Items 12 (territory), 15 (owner participation) and 17 (renewal, termination and disputes)
Contract and territory detail
| Allowed renewals | 1 |
|---|---|
| Protected territory | Yes |
| Exclusive territory | No |
| Territory radius | 0.5 mi |
| Online sales rights | Restricted |
| Franchisor can compete | Yes |
| Who runs it (Item 15) | A manager may run it |
| Non-compete (years) | 2 years |
| Non-compete (miles) | 5 mi |
| Right of first refusal | Yes |
| RoFR response window | 30 days |
| Transfer requires consent | Yes |
| Termination notice | 30 days |
| Curable defaults | 6 |
| Mandatory arbitration | Yes |
| Jury trial waiver | Yes |
| Governing law | your State |
Items 10 (financing), 11 (training and support)
Training and operations
- Classroom training
- 40 hrs
- On-the-job training
- 40 hrs
- Training location
- On-site and corporate
- Ongoing training
- Required
- Time to open
- 3–6 mo
- From signing to launch (FDD p.61)
- Site selection
- Franchisor-designated commercial real estate broker; franchisee must permit franchisor to negotiate lease
- Franchisor financing
- Not offered
- Item 10
- POS system
- Franchisor-designated POS Register with Olo online ordering integration
- Operating tech stack
Items 5 (initial fees) & 11 (training and support)
Franchisor support
Item 20 (outlet counts) · call current owners
Franchisee contacts
Who can you call before you sign?
182 current outlets listed
Each record has a phone number and state. 163 of 194 also name the franchisee; 163 of 194 also name a city. 194 records: 182 current outlets + 12 former owners (terminated, transferred, not renewed or otherwise left). From the filing's Item 20 (the outlet list); the FDD itself is the free source. Our list covers 182 of the 423 franchised outlets Item 20 counts at year end; the owner exhibit prints the rest without a usable phone number, or omits them.
For your own due-diligence calls only. Not for telemarketing, marketing lists, or automated or prerecorded calls or texts.
One-time · CSV download · full refund within 7 days if the data does not match the FDD. Some numbers, especially for former owners, may be outdated.
Frequently asked questions
How much does it cost to open a Wetzel’s Pretzels franchise?
Per the 2026 FDD, the total investment to open a Wetzel’s Pretzels franchise ranges from $189K to $725K, with an initial franchise fee of $20K – $40K. This is the Item 7 total in the Franchise Disclosure Document (FDD): the startup costs the franchisor lists, such as build-out, equipment, inventory and working capital. It usually leaves out buying land or a building; Item 7's notes say what is excluded.
What do Wetzel’s Pretzels franchise owners earn?
According to Item 19 of the Wetzel’s Pretzels FDD, average gross sales were $813K (Item 19 group “All Franchised WETZEL'S PRETZELS Bakeries (Table 1)”, 295 outlets; gross sales, not profit). The median is $670K. What an owner keeps depends on location, operating costs and management.
Who owns Wetzel’s Pretzels?
Wetzel’s Pretzels is franchised by Wetzel's Pretzels, LLC. Its parent company is MTY Franchising USA, Inc.. The ultimate parent named in the FDD is MTY Food Group, Inc.. Source: FDD Item 1, 2026 filing.
What is Item 19 in the Wetzel’s Pretzels FDD?
The FDD section where a franchisor may disclose financial performance of its outlets. Disclosure is optional and formats vary; figures are typically gross sales, which is revenue before expenses, not profit. FranchiseVerdict extracts these figures directly from the Wetzel’s Pretzels FDD and qualifies whose outlets they describe.
What is Wetzel’s Pretzels' franchise failure rate?
There is no published franchise failure rate. What is measurable is Wetzel’s Pretzels' SBA charge-off rate: 17.4% on 92 resolved loans. Put plainly: 1 in 6 SBA 7(a) loans to Wetzel’s Pretzels owners charged off (16 of 92 resolved loans, approved since FY1991); loans approved FY2014–FY2017: 2 of 30 resolved loans charged off (6.7%); newer loans have not had time to default, so this is not a trend. The SBA charge-off rate is the share of a brand's resolved SBA 7(a) loans to its franchisees that the SBA wrote off, including purchased guarantees. Resolved means paid in full or charged off; active loans are excluded because their outcome is not yet known. It is a lending outcome, not a count of closed businesses. A franchisee can repay and close, or default and keep trading.
How many Wetzel’s Pretzels franchise locations are there?
Per the 2026 FDD, Wetzel’s Pretzels has 423 franchised units and 35 company-owned (458 in all). In the latest year, the number of franchised outlets grew by 33 (48 opened, 15 closed).
Is Wetzel’s Pretzels a good franchise to buy?
FranchiseVerdict gives Wetzel’s Pretzels a B Verdict grade (Second tier) with a verdict score of 56 out of 100 (higher is better), an editorial assessment, not investment advice. Helped by financial health (audited financials), unit economics, unit growth, scale, legal record and transparency. The “Why a B” section on this page lists all six dimensions and any adjustment. Speak with current franchisees before making any investment decision.
Other Quick-Service Restaurants franchises
Similar investment first, then by grade
This information is provided for research purposes only and does not constitute financial, legal, or investment advice. Verify all figures with the franchisor's current Franchise Disclosure Document before making any investment decision.