In this exclusive Franchise Chatter FDD Talk post, you’ll learn the following:

Section I – Estimated initial investment (franchise costs) for a Charleys Philly Steaks franchise, based on Item 7 of the company’s 2024 FDD

Section II – Initial franchise fee, royalty fee, and marketing fee for a Charleys Philly Steaks franchise, based on Items 5 and 6 of the company’s 2024 FDD

Section III – Number of franchised and company-owned Charleys Philly Steaks outlets at the start of the year and the end of the year for 2021, 2022, and 2023, based on Item 20 of the company’s 2024 FDD

Section IV – News updates on the Charleys Philly Steaks franchise opportunity

Section V – Presentation and analysis of Charleys Philly Steaks’ financial performance representations (average revenues and/or profits), based on Item 19 of the company’s 2024 FDD, including information on the:

• 2023 average gross sales, median gross sales, and range of gross sales for the 588 franchised Charleys Philly Steaks Restaurants that were open during the entire 2023 calendar year, grouped by venue type (military bases, airport, mall food court, strip center, Walmart, and all)

Section VI – Key ratios, comparables, computations, and analyses for the Charleys Philly Steaks franchise opportunity (exclusive content for Platinum subscribers)

Section I – Charleys Philly Steaks Franchise Costs

• Initial Franchise Fee:  $24,500
• Leasehold Improvements:  $50,000 to $329,000
• Equipment/Furniture/Fixtures:  $50,931 to $145,000
• POS and Kiosk System:  $11,628 to $19,467
• Signage:  $5,000 to $20,000
• Architect and Engineer:  $8,000 to $16,000
• Travel and Living Expenses Associated With Initial Training:  $4,000 to $8,000
• Insurance:  $3,500 to $10,000
• Deposits and Professional Fees:  $1,000 to $7,000
• Real Estate Lease:  $12,500 to $50,000
• Grand Opening Marketing Kit:  $7,000 to $10,000
• Additional Funds (3-month period):  $24,000 to $30,000
• Total Estimated Charleys Philly Steaks Franchise Costs:  $202,059 to $668,967 (does not include real estate purchase costs)

Section II – Charleys Philly Steaks’ Initial Franchise Fee, Royalty Fee, and Marketing Fee

• Initial Franchise Fee:  $15,000 to $24,500
• Royalty:  the greater of (a) $300 (per week) or (b) 6% of your Gross Sales
• Advertising and Promotion Obligation:  currently 3% of Gross Sales (1% to the Marketing Fund and 2% for Local Store Marketing)

Section III – Number of Franchised and Company-Owned Charleys Philly Steaks Outlets

Franchised

2021

• Outlets at the Start of the Year:  496
• Outlets at the End of the Year:  538
• Net Change:  +42

2022

• Outlets at the Start of the Year:  538
• Outlets at the End of the Year:  611
• Net Change:  +73

2023

• Outlets at the Start of the Year:  611
• Outlets at the End of the Year:  700
• Net Change:  +89

Company-Owned

2021

• Outlets at the Start of the Year:  55
• Outlets at the End of the Year:  55
• Net Change:  0

2022

• Outlets at the Start of the Year:  55
• Outlets at the End of the Year:  61
• Net Change:  +6

2023

• Outlets at the Start of the Year:  61
• Outlets at the End of the Year:  61
• Net Change:  0

Section IV – News Updates on the Charleys Philly Steaks Franchise

Section V – Financial Performance Representations (Average Revenues and/or Profits) for the Charleys Philly Steaks Franchise (Item 19, 2024 FDD)

• There were 700 franchised Restaurants in operation as of December 31, 2023. The Statement of Average Gross Sales table below presents information about the historic annual sales of 588 franchised Restaurants that were open during the entire 2023 calendar year.

• This table excludes the performance of 111 franchised Restaurants that opened during 2023, 22 franchised Restaurants that permanently closed during 2023, and one franchised Restaurant that closed temporarily in 2023.

Military Bases

• Average Gross Sales:  $618,634
• Median Gross Sales:  $579,796
• Range of Gross Sales:  $146,455 to $1,325,195
• Number of Restaurants:  73
• Number and Percent of Restaurants That Met or Exceeded Average:  33 (45.21%)

Airport

• Average Gross Sales:  $1,159,559
• Median Gross Sales:  $1,175,224
• Range of Gross Sales:  $458,907 to $1,844,547
• Number of Restaurants:  3
• Number and Percent of Restaurants That Met or Exceeded Average:  2 (66.67%)

Mall Food Court

• Average Gross Sales:  $1,025,686
• Median Gross Sales:  $951,250
• Range of Gross Sales:  $309,670 to $3,100,794
• Number of Restaurants:  324
• Number and Percent of Restaurants That Met or Exceeded Average:  137 (42.28%)

Strip Center

• Average Gross Sales:  $1,005,355
• Median Gross Sales:  $903,950
• Range of Gross Sales:  $304,024 to $3,166,966
• Number of Restaurants:  119
• Number and Percent of Restaurants That Met or Exceeded Average:  47 (39.50%)

Walmart

• Average Gross Sales:  $775,445
• Median Gross Sales:  $766,927
• Range of Gross Sales:  $393,953 to $1,386,952
• Number of Restaurants:  69
• Number and Percent of Restaurants That Met or Exceeded Average:  31 (44.93%)

All Restaurants

• Average Gross Sales:  $942,354
• Median Gross Sales:  $859,883
• Range of Gross Sales:  $146,455 to $3,166,966
• Number of Restaurants:  588
• Number and Percent of Restaurants That Met or Exceeded Average:  239 (40.65%)

• The term “Gross Sales” means the aggregate amount of all sales of food, beverages, and other products sold and services rendered in connection with a Restaurant, including monies derived from sales at or away from the Restaurant, whether for cash or credit, but excluding: (1) all federal, state, or municipal sales or service taxes collected from customers and paid to the appropriate taxing authorities; and (2) all customer refunds and adjustments and promotional discounts made by the Restaurant.

• The Gross Sales of franchised Restaurants were derived from unaudited financial reports submitted by franchisees for the purpose of computing royalty fees.

• Some Restaurants have sold this much. Your individual results may differ. There is no assurance that you’ll sell as much.

• Charleys has not included the costs of sales, operating costs, or other costs and expenses for the Restaurants.

Section VI – Charleys Philly Steaks Franchise Ratios, Comparables, Computations, and Analyses (Exclusive Content for Platinum Subscribers) ⬇️