Best Franchise Deal for 2020 - Charleys Philly Steaks

Charleys Philly Steaks 


Total U.S. units: 549 

U.S. franchise units: 492 

System-wide sales: S445,000,000 

Franchise AUV: $827.285 

Franchise fee: $24,500 

Total start-up costs: S458,996-S637,568 

Royalty: 6% 

Renewal fee: Sl0,000 

Marketing fee: 4% 


The skinny: Charleys' favorable financials are attractive on paper, but the proof is also in the pudding: Seventy percent of growth comes from existing franchisees. The brand has prioritized nontraditional locations like malls and airports in the past, but it's now turning its attention to traditional sites, as well, and hopes to open hundreds if not thousands of locations in the coming years. 


The selling point: With robust experience in the nontraditional space, Charleys is a highly efficient concept that's already adept at running out of small spaces-a necessity in the post COVID world that prioritizes off-premises service. And now it's taking that experience to more street-level locations, which could help position it as a solid competitive threat to Jersey Mike's and Firehouse Subs. 


Council's take: "The buildout and overall investment is lower than many other quick-service opportunities. They are especially relevant for nontraditional deals such as airports.