Charleys Philly Steaks is a quick-service restaurant specializing in Philadelphia-style cheesesteaks and other grilled subs. The franchise offers a menu including fries, lemonade, and various sandwiches.
Key Insights
- Charleys Philly Steaks began with a culinary vision to bring authentic cheesesteak flavors to a wider audience, evolving into a recognized brand in the fast-casual dining sector by focusing on quality ingredients and a signature taste.
- The franchise operates through a franchise model, supporting franchisees with operational guidance, marketing strategies, and supply chain management, enabling them to establish and run their own Charleys Philly Steaks locations effectively.
- The business is situated within the broader fast-casual restaurant industry, a segment characterized by its growth and consumer demand for convenient, yet higher-quality, food options compared to traditional fast food.
Franchise Fee and Costs to Open
Exploring the financial picture of Charleys Philly Steaks gives insight into both the upfront commitment and the potential revenue opportunity. According to FDD Item 7, opening this franchise typically involves an investment in the range of $203,736 - $694,249, along with a franchise fee of $24,500 - $24,500.
Financial Performance and Revenue
Yearly gross sales of $813,041 and estimated earnings of $97,565 - $121,957 show the potential financial performance of this franchise. These figures are crucial for prospective franchisees as they help to project revenue and profitability. They offer insight into the business's ability to generate income and can be used to compare its performance against other investment opportunities. The Franchise Payback Period of 4.6-6.6 provides an estimation of the time it might take for an owner to recover their initial investment. This metric is a key consideration for anyone evaluating the financial viability of a franchise, as it relates directly to the speed at which the business can become profitable. A shorter payback period can indicate a faster return on capital, which is a significant factor in making an informed decision about a franchise investment.
Training and Resources
Charleys Philly Steaks provides comprehensive training and resources for new franchisees. Initial training spans two weeks and is conducted at Charleys' headquarters. The franchisor offers a robust operational manual and ongoing support, focusing on brand standards and best practices. Extensive resources are available to help franchisees establish and run their Charleys Philly Steaks location.
Legal Considerations
Legal considerations for a Charleys Philly Steaks franchisee are defined by the Franchise Disclosure Document (FDD) and the Franchise Agreement. This franchise does not disclose lawsuits or bankruptcy information in its FDD, but prospective franchisees should still review all terms thoroughly. Consultation with a qualified attorney is essential before making commitments.
Challenges and Risks
Operating a Charleys Philly Steaks franchise presents several considerations. Franchisees will need to navigate local market dynamics, understanding existing competition for sandwich and fast-casual dining options. The business model's reliance on consistent ingredient quality necessitates a robust supply chain, while day-to-day operations require efficient staff management and adherence to brand standards for food preparation and customer service.
Franchise Datasheet
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