Fazoli’s has been serving up delicious fare since its founding in 1988, and it has continued to gain in popularity since then. If you’re considering opening a Fazolis franchise, it’s important to make sure you read the reviews before making a decision. Here’s what you need to know about the franchise reviews of Fazoli.
Before you dive into setting up a franchise, it makes sense to understand what costs are associated with operating one as well as the potential for earnings. You should also be on the lookout for any additional fees or restrictions that might come along with owning a Fazoli’s franchise.
Other factors to consider when reading reviews are the support and guidance Fazoli’s offers its franchise and customer feedback. This can be vital information when deciding whether or not this is the right business opportunity for you!
Fazoli’s, a popular Italian-American fast-food chain, has experienced significant growth recently. On average, a Fazoli franchise makes $1,094,219 in sales per year. The company has posted 20 consecutive months of positive sales growth, with systemwide same-store sales up 21.7% year-over-year in December 2021 and a two-year sales lift of 26.3%. Fazoli has around 4,700 employees, and the revenue per employee ratio is $54,936. In 2021, Fazoli’s peak revenue was $258.2 million.
What is the Fazoli’s?
The Fazoli’s brand has been around since 1988 and is known for serving fresh, Italian-inspired cuisine in a fast-casual environment. In addition to its more than 220 restaurants across the country, the brand is becoming increasingly popular for franchise opportunities.
Let’s start by talking about costs and profitability. Investing in a Fazoli’s franchise requires an initial investment of between $783,500 – $2,328,500 and ongoing royalties of 5%. In terms of profits, Fazoli franchisees have seen an average net return of 19%, which is very good compared to other franchise opportunities.
It’s also important to consider reviews when assessing any franchise opportunity. Fortunately, there are many positive reviews from current and former franchisees who speak highly of their experience with Fazoli’s—especially with the support they received from corporate staff during any issues they encountered. This offers potential franchisees a positive view of the program and expectations moving forward.
Is Fazoli’s a franchise opportunity?
Fazoli’s is definitely a franchising opportunity that you should take a look at. The company has been around for over 30 years, and they have over 216 locations across the U.S., so they’ve proven their success. That said, you still have to do your due diligence when looking into franchising with Fazoli’s.
So what do you need to know about becoming a Fazoli’s franchisee?
- Cost of Entry
The upfront cost for a Fazoli franchise is actually quite reasonable—$50,000. Plus, you can finance some of the costs through the company itself. That being said, you’ll need some cash on hand to make this happen—expect an initial investment of $783,500 – $2,328,500 for everything from inventory and staff to licensing fees and real estate costs.
- Profit Potential
If things go well with your Fazoli franchise, you could see annual revenues of $1 million to $2 million, depending on location and customer volume. That could mean up to 5–10% in earnings on top of gross sales (provided your expenses are balanced). You should also factor in that additional income might come from catering or delivery services, which may be offered in some areas as well.
Facts That Nobody Told You About Fazoli’s
When it comes to starting a Fazoli franchise, you might not know everything you need to know. Here are some facts that could surprise you
- Low setup cost
The setup costs for a Fazoli franchise are surprisingly low for the type of restaurant. The initial cost of a Fazoli’s franchise averages about $500,000. It is a lot less than most restaurants, which can easily be set up for about $1 million or more.
- High return on investment
Despite the relatively low setup cost, Fazoli’s franchises have been enjoying a good return on investment (ROI). According to one study, the average restaurant grosses over $1 million each year and has an ROI of 87%. This means that the returns are higher than those offered by other types of fast-food franchises.
- Low Labour Cost
One thing that makes starting a Fazolis franchise attractive is its low labor costs. Since the restaurant is mostly automated, it requires fewer employees than other restaurants, resulting in significantly lower labor costs. This helps minimise overhead costs and ensure high profits.
These are just some of the facts you should know when considering Fazoli’s franchises. With its low setup cost and high ROI potential, it could be an excellent opportunity for many aspiring entrepreneurs.
Fazoli’s Franchise Information
|Industry Type||Food Franchise Opportunities|
|Sub Category||Quick-service/Fast-casual restaurants|
|Company Name||FAT Brands|
|Founder/Management Head||Kuni and Carol Toyoda|
|Employees at Company H.O||1000-1500|
|Franchise Expansion Plan||Throughout the US|
|Number of Units||220 (as of November 2021)|
|Number of Franchise Units||160+|
|Social Media Handles|
|Company Office location||Lexington, Kentucky, United States|
Fazoli’s Franchise Requirements
Before you decide to become a Fazoli’s franchise, you’ll want to familiarise yourself with the company’s requirements.
- Liquid Capital
You will need liquid capital of at least $500,000 and a net worth of $800,200 – $1,298,818. The cost includes the franchise fee and operating costs, so you should consider whether you can afford the investment before signing a contract.
- Franchise agreement term
The initial term of your franchise agreement is 15 years, but it can be renewed for additional periods that are based on your performance as a franchisee.
- Royalty fees
You will have to pay 5% royalty fees on weekly gross sales and 4% on advertising costs each year. Additionally, all Fazoli franchises must belong to a Franchise Advisory Council, which requires an additional nominal fee each month.
- Other expenses
You will also incur other expenses such as rent, food supplies, equipment maintenance, and other operational costs such as wages for employees and the cost of utilities. As Fazoli’s owner-operator, you’re expected to be employed full-time at the restaurant to ensure that every detail is taken care of.
In addition to meeting all financial requirements stated above, franchise owners are expected to operate within Fazoli’s strict guidelines regarding product recipes, store operations, and customer service standards. With dedication and hard work, anyone willing to take these requirements into consideration may find success with owning their own Fazoli franchise
How much does a Fazolis franchise cost?
The total investment to open a Fazoli’s restaurant franchise cost ranges between $1,000,000 – $1,500,000, depending on location and size—that’s a wide range!
So as you can see, there is a significant financial investment required to become a Fazoli’s franchise—but you can expect a great ROI if everything goes according to plan!
|Fazoli’s Franchise Price and Cost|
|Fazoli’s Franchise Fee||$40,000|
|Fazoli’s Franchise Cost||$783,500 – $2,328,500|
|Term of Agreement||15 years|
|Is franchise term renewable?||Yes|
How much do Fazoli’s franchise owners make?
Another thing you should know about Fazoli franchise reviews is how much their owners typically make. As with any franchise, there are a number of factors that determine how profitable your restaurant will be, such as location, marketing activities, and customer service.
However, the average Fazoli’s owner reportedly makes between $800,000 and $1 million in profits annually. To get the highest possible return on investment, it’s important to have a comprehensive understanding of the Fazoli’s Franchising Programme.
Let’s take a look at some key aspects
- Initial Cost: The initial cost of owning a Fazoli franchise can range from $783,500 – $2,328,500. This price includes the cost of construction materials, equipment, and professional fees.
- Ongoing Fees: As part of the franchise agreement, owners must pay an ongoing royalty fee equal to 5% of the restaurant’s gross sales each month. Additionally, there is an advertising fee equal to 4% of the restaurant’s gross sales each month.
- Financing Options: Financing options are available for qualified candidates who would like to open a Fazoli franchise. These options include SBA loans or private equity funding through independent lenders or investors.
By taking all these factors into consideration—as well as other aspects such as potential customer base size, staff availability, and local competition—you can get a better idea of what your expected return on investment for choosing to become a Fazoli’s franchisee may look like.
What is Fazoli’s franchise profit?
I will analyse the Fazoli’s franchise profit and years to recoup the investment (ROI).
|AUV||Estimated Annual Profit (12.5%)||Estimated Annual Profit (15%)||Estimated Annual Profit (18%)|
|$ 1,094,219||$136,777||$ 164,132||$ 196,959|
|Recoup mid-point$ 1,276,509||9.3 years||7.7 years||6.4 years|
The estimated Fazoli’s franchise profit is in the range of $136,777 to $196,959 and it will take 6.4 to 9.3 years to recoup the investment.
According to industry standards, getting a return on the franchise investment will take an average amount of time.
Fazoli’s Training for Franch-ises
Getting a Fazoli franchise isn’t just about owning the business—you need to be equipped to run it. So one of the best things about Fazoli’s is that they provide extensive training and support to their franchises. They offer detailed training and operational manuals, which franchisees can use as a guide when setting up their stores.
- Training Programmes
The company also offers a comprehensive 8-week training programme for franchisees that covers everything from customer service to store operations. This programme offers both classroom instruction and hands-on experience, and all staff members who will be part of the franchise are trained onsite at one of Fazoli’s locations.
- Ongoing Support
In addition to helping you get your store off the ground, Fazoli’s also provides ongoing support throughout the year. They have an annual meeting for all franchises where new menu items, best practises, and other updates are discussed, and they also provide weekly updates and tips via webinars or emails.
With such comprehensive training programmes and ongoing support from Fazoli’s corporate team, you can make sure your franchises is running as smoothly as possible from day one—and they make sure their franchises stay up-to-date with the latest developments in the industry.
Fazoli’s Operations to Franchises
If you’re intrigued by Fazoli franchise reviews and considering starting your own business, you may be happy to know that Fazoli’s offers an easy transition from operations to franchising. This means that you can start as an operator and get a feel for the brand before taking on the commitment of becoming a franchisee.
Here are some of the advantages of transitioning from operations to franchises:
- You can start as an operator right away, without any experience in the restaurant industry.
- You’ll have a better chance of success because you understand Fazoli’s systems, operations, and culture.
- You won’t have to go through the same training costs and time constraints as those who are just getting into franchising with Fazoli’s for the first time.
- You will have access to expert guidance from experienced operators who can help make sure you understand all aspects of the business, from marketing and sales to customer service and operations procedures.
- You will be able to benefit from Fazoli’s strengths in marketing and brand-building techniques that other restaurants don’t have access to.
Going from operations to franchising gives you an advantage over other non-experienced franchisees—you already know what makes Fazoli’s successful, plus all the resources they offer their franchisees make it even easier to take your business to new heights!
How is Fazoli’s territory granted to franchises?
When you’re considering a Fazoli’s franchise, you want to know exactly how the territory is granted. The answer? through the Development Agreement. This agreement grants a geographic area to each franchisee, and it’s best to negotiate the terms within this agreement before signing on the dotted line.
You should know that Fazoli’s typically doesn’t grant exclusive territories, so if a prospective buyer shows interest in an area near your own, you may have to compete for customers. Furthermore, Fazoli’s does not require customers to purchase equipment or signage from an approved vendor, giving you more control over your costs and profit margins.
- Development Agreement Terms
The Development Agreement outlines the terms of your territory—how many restaurants you can open and in which locations. It also states any restrictions and exclusives that may apply in regards to how close another Fazoli’s restaurant can be located to yours and in what markets your restaurants can operate. Finally, it lays out any conditions related to trademark usage, supply chain requirements, and other operational details that must be met.
So if you’re interested in opening a Fazolis franchise, be sure to carefully read over the Development Agreement before signing anything so that you understand your rights as a franchisee when it comes to territory selection and usage.
What is the term of the franchise agreement and renewal?
When it comes to the Fazolis franchise, you might be wondering about the term of the agreement and renewal policies. Fazoli’ Franchise is a long-term commitment that requires an initial investment of around $783,500 – $2,328,500. The term of the agreement is 15 years, but it leaves room for renewal every 5 years. The terms for renewal begin with a reduction in royalties and ad fund contributions for up to 3 years.
Additionally, if you decide to renew after the initial 10-year agreement, you can look forward to taking advantage of incentives like:
- Continuing support from Fazoli franchise owners and the corporate team
- Marketing campaigns that will help increase sales at your location
- Discounts on select items from the Fazoli’s menu
- Financial assistance to help with remodeling and grand openings
Fazoli franchise renewal terms are designed with an eye toward making sure that you are successful in your investment as well as ensuring that you remain an active partner in the Fazoli family.
Financial assistance to franchises?
Have you been wondering if Fazoli’s provides financial assistance to their franchisees? The answer is a resounding yes! With multiple options available, the company has an array of resources that can help franchisees get up and running.
A few of the services they provide to assist include:
- Financial assistance and loan programs
- Assistance with lease negotiations and financing of equipment
- Technical expertise from restaurant and operations experts
- Support from the corporate team for marketing, public relations, research, training, and more
- Ongoing regional support for field marketing and regional operations planning
Fazoli’s also offers training programs for new franchisees. The courses are designed to provide a complete understanding of all areas of the business, including preparation for opening a store, tips from successful existing franchisees, and more. Franchisees who complete the training program leave with the perfect foundation to start their business.
With their dedicated team members on staff to assist in every area of franchising as well as multiple resources available to get started, Fazoli’s provides an unbeatable opportunity for entrepreneurs looking to take advantage of this booming market.
Pros and Cons of Owning a Fazolis Franchise
When it comes to owning a Fazoli’s franchise, there are several pros and cons to consider. It’s important to keep an open mind and weigh the pros and cons when deciding if Fazoli’s is right for you.
- Pros of Owning a Fazoli’s Franchise
The main selling point of any franchise is that you don’t have to reinvent the wheel—Fazoli already has an established process and system in place to help you get started. This saves you a lot of time and helps you build a successful business faster. Additionally, Fazoli’s has a loyal fan base with well-known products, which makes it easier to market your business. And, since Fazoli’s offers an attractive initial investment cost, you can get your business up and running without breaking the bank.
- Cons of Owning a Fazoli’s Franchises
The downside of owning a Fazoli franchise is that you have less control over operations since you must follow their established procedures and guidelines. Also, since the restaurant industry can be highly competitive and unpredictable, there’s no guarantee that your business will be successful, just as there are no guarantees in life. Finally, although Fazoli’s may offer an attractive initial investment cost, they also charge royalties, which can add up over time.
What are Fazolis franchise reviews?
It goes without saying that Fazolis franchise reviews are important to consider when opening a restaurant.
Fazoli’s has been in business since 1988, so they have a long track record of success. In fact, the brand has consistently been regarded as one of the best pizza franchises in the country. So, what do people have to say about Fazoli’s franchises?
Overall, most reviews note that Fazoli is an excellent choice for entrepreneurs who want to open a pizza franchise. Here are a few things customers and franchise owners rave about:
- Ease of ownership: Many reviews note that the process of setting up and running a Fazoli’s is relatively straightforward and simple.
- Excellent support system: franchisees and customers alike report that Fazoli provides top-notch support when it comes to marketing campaigns, training programs, and more.
- Affordability: Many reviews point out that Fazoli’s initial investment costs are relatively low compared to other franchise opportunities in the same industry. This makes it an especially attractive option for entrepreneurs with limited capital.
- Great profits: Of course, one of the main points made by many positive reviews is that franchise owners can enjoy great profits from running their own Fazoli locations.
All in all, it appears that Fazoli’s has plenty of satisfied customers and franchisees!
Fazoli’s Franchise Rankings
In 2021, Fazoli was ranked by Forbes as the No. 18 best franchise to buy in the high-investment category. The ranking was based on the initial investment required, the five-year growth rate, and the five-year continuity rate. Fazoli’s has also received recognition for its performance in the fast-food industry. In 2019, Fast Casual ranked Fazoli’s 43rd on its Top 100 Movers & Shakers list, which acknowledges the industry’s most innovative and successful brands.
To get the most up-to-date rankings, you may want to visit franchise ranking websites or consult resources like Entrepreneur’s Franchise 500 list or Forbes’ Best Franchises to Buy.
Fazolis-Franchise Deck Analysis and Overview
Before signing on for a Fazoli franchise, you’ll want to take the time to assess all potential risks. To do this, you can get an analysis from Franchise Deck, which reviews the current and future market situation, franchise costs, and profit potential. This document is your roadmap for success in making the best decision for you and your business.
- Franchise Market analysis includes a market analysis of the current state of the restaurant industry relative to Fazoli’s as well as a comparison of competitors in the area. This helps you understand exactly what you are getting into when investing in a Fazoli ‘s franchise.
- Franchise cost advantages
The analysis also takes into account franchise cost advantages and whether an investment in the Fazolis franchise is worth it. Knowing this information upfront can help prepare you mentally and financially for entering into an agreement with Fazoli’s.
- Profit Potential Assessment
Lastly, the analysis provides an overview of your expected profits from running a Fazolis franchise. It takes into account various factors, including overhead costs, labor costs, supply costs, and competition in the market, to give you an estimate of how much money you can expect to make from your business. With this information at hand, you can decide if investing in a Fazoli franchise is really worth it for you or not.
Fazolis Franchise Success and Failure Rate
The below table will highlight Fazoli’s franchise success and failure rate for the last 3 years. This will supplement your decision-making process.
Competition Analysis of Fazolis Franchise
|Cost to Franchise||Franchisee Fees||Royalty + Ad fees||Expected Profit||Recoup of Capital||FD Rating|
|Fazolis Franchise||$783,500 – $2,328,500||$40,000||5%+4%||$1-$2 million||–||4.0/5.0|
|Popeyes Franchise||$109,500-$3,545,800||$2,500-$50,000||5%+4%||$50,000-$200,000||3.5-10.25 years||4.0/5.0|
|Jack in the Box Franchise||$1,697,000-$2,694,600||$50,000||5%+5%||$196,906-$283,545||7.5-11 years||3.5/5.0|
|Wingstop Franchise||$315,310 – $948,080||$20,000||6%+6%||$200,000||4-6.75 years||3.9/5.0|
|KFC Franchise||$1,442,550 – $2,771,500||$45,000||5%+5%||$120,000||–||4.1 / 5.0|
|Jersey Mike’s Subs Franchise||$144,668-$786,233||$18,500||6.5%+1%||$1.3 million||3-5 years||4.0/5.0|
The Franchise Deck rating for the Fazoli franchise is 4.0/5.0.
Conclusion: Should You Buy the Fazolis franchise for Sale?
Is the Fazolis franchise worth it? That’s a decision that only you can make,as investments in any business venture always come with a certain level of risk. However, if you’re an entrepreneur looking for a well-established restaurant chain that offers an established brand, menu, and low investment cost compared to other franchises, Fazolis may be a great franchise option.
Fazoli’s has been in business since 1988 and is currently one of the most successful fast-casual Italian restaurants in the US. Franchisees cite profit margins averaging around 20%, with high volumes of sales due to customer loyalty and consistently tasty food. Moreover, Fazoli offers low startup costs and ongoing support from their team, which makes them a great choice for anyone considering a restaurant franchise opportunity.
The bottom line is that whether or not Fazoli’s is the right choice for you depends on your commitment to hard work and dedication. With research, careful planning, and strategic use of resources, you could potentially achieve success with Fazoli as your partner.
Entrepreneurs who want to open a franchise in the category franchise opportunities categories can look at
- Popeyes Franchise
- Jack in the Box Franchise
- Krispy Kreme Franchise
- Wingstop Franchise
- Taco Bell franchise
- Jersey Mike’s Franchise
- Little Caeser’s Franchise
- KFC Franchise
- Chick-Fil-A Franchise
- Domino’s Franchise
- Freshii franchise
- Fat Shack Franchise
- The Cheesecake Factory Franchise
- Pizza King Franchise
- Potato Corner Franchise
- Hummus Republic Franchise
Frequently Asked Questions (FAQs)
Is the Fazolis franchise profitable?
Yes, restaurants in Fazoli franchise network generally perform quite well and meet their financial expectations.
Can you make money owning Fazoli’s?
Yes, many owners of Fazoli’s franchises report making a good profit. A big part of that is because the overhead costs (like rent and utilities) are lower than those of other restaurants in similar or higher-priced categories.
Is Fazoli’s a franchise?
Yes, Fazoli is a franchise restaurant chain that was founded in 1988 and has grown to over 200 locations in 28 states.
How much is a Fazoli’s franchise?
The initial investment for a Fazoli franchise ranges from $783,500 – $2,328,500, depending on factors such as the location and size of the restaurant. This includes the initial franchise fee, which is $50,000.
How do Fazoli’s franchises make money?
Fazoli’s franchises make money by offering high-quality Italian food at reasonable prices and through their franchising strategies like low-cost operations and leveraging customer loyalty.