L&L Hawaiian Barbecue vs Wetzel's Pretzels
L&L Hawaiian Barbecue vs Wetzel's Pretzels: L&L Hawaiian Barbecue costs $200K to $600K to open; Wetzel's Pretzels costs $200K to $500K. L&L Hawaiian Barbecue has 19 units, Wetzel's Pretzels has 122. SBA loan history: L&L Hawaiian Barbecue = 19 loans (0.0% default); Wetzel's Pretzels = 156 loans (10.3% default). The franchise with more SBA funded units, a lower SBA default rate, and a lower royalty load is the safer financing bet; see the comparison below.
L&L Hawaiian Barbecue vs Wetzel's Pretzels: Capital, Scale & Lending Analysis
Analysis based on FDD filings and SBA 7(a) loan level data. Each pairing reflects a unique combination of capital intensity, system scale, and financing path.
Capital Intensity
Wetzel's Pretzels requires the lower minimum capital commitment ($200K vs $200K for L&L Hawaiian Barbecue), a 0% spread. Initial franchise fees come in at $30K for L&L Hawaiian Barbecue versus $30K for Wetzel's Pretzels. Ongoing royalty load is 5% for L&L Hawaiian Barbecue and 6% for Wetzel's Pretzels, giving L&L Hawaiian Barbecue the lighter per-unit drag on operating income.
System Scale & Tenure
On scale, Wetzel's Pretzels operates 122 units to L&L Hawaiian Barbecue's 19, roughly 6× the system size. L&L Hawaiian Barbecue has been operating 50 years (founded 1976) versus 32 for Wetzel's Pretzels (founded 1994), a 18-year tenure gap that affects unit-economics maturity and FDD revision history.
SBA Lending Profile
Wetzel's Pretzels has the deeper SBA lending track record, with 156 7(a) approvals compared with 19 for L&L Hawaiian Barbecue. L&L Hawaiian Barbecue's peak SBA year was 2018 (5 loans); Wetzel's Pretzels's peak was 2016 (13 loans). L&L Hawaiian Barbecue's more recent peak generally indicates fresher lender appetite. Both systems have the most SBA funded units in CA. Borrowers in that state will find the deepest lender familiarity with either brand. Average SBA loan size on funded L&L Hawaiian Barbecue deals is $415K vs $396K for Wetzel's Pretzels, useful as a sizing anchor when modeling your own unit.
Risk Signal
SBA default rates are 0.0% for L&L Hawaiian Barbecue and 10.3% for Wetzel's Pretzels, L&L Hawaiian Barbecue has the cleaner SBA loss record by 10.3 points. PeerSense FPI scores come in at 76 (Strong) for L&L Hawaiian Barbecue and 75 (Strong) for Wetzel's Pretzels, giving L&L Hawaiian Barbecue the stronger composite signal across SBA performance, lender appetite, and operational consistency.
Health & Performance
FPI Score | 76/100 | 75/100 |
Health Tier | Strong | Strong |
Confidence | N/A | N/A |
Lending Trend | Growing | Stable |
SBA Lending
SBA Loans | 19 | 156 |
SBA Volume | – | – |
Default Rate | 0.0% | 10.3% |
Peer Tier | growing | major |
Investment & Costs
Total Investment | $200K to $600K | $200K to $500K |
Franchise Fee | $30K | $30K |
Royalty Rate | 5% | 6% |
Ad Fund | N/A | 1% |
Liquid Capital | N/A | $100K |
Net Worth Required | N/A | $400K |
Financial Performance (Item 19)
Item 19 Status | Not Disclosed | Disclosed |
System Size & Operations
Total Units | 19 | 122 |
Franchised Units | 19 | 122 |
Company Owned | – | – |
Term Length | N/A | 10 yrs |
Brand Information
Year Founded | 1976 | 1994 |
Franchising Since | 1999 | 1996 |
Years Franchising | 27 yrs | 30 yrs |
Headquarters | Honolulu, HI | Pasadena, CA |
Category | Quick-Service Restaurants | Quick-Service Restaurants |
Website | ||
FDD Year | N/A | 2025 |
Which Is Better, L&L Hawaiian Barbecue or Wetzel's Pretzels?
Lower upfront capital required
Tie
L&L Hawaiian Barbecue: $200K starting · Wetzel's Pretzels: $200K starting
More SBA lender confidence
Wetzel's Pretzels
L&L Hawaiian Barbecue: 19 SBA loans · Wetzel's Pretzels: 156 SBA loans
Lower SBA default rate
L&L Hawaiian Barbecue
L&L Hawaiian Barbecue: 0.0% · Wetzel's Pretzels: 10.3%
Larger system & brand presence
Tie
L&L Hawaiian Barbecue: 19 units · Wetzel's Pretzels: 122 units
Lower ongoing royalty load
L&L Hawaiian Barbecue
L&L Hawaiian Barbecue: 5% · Wetzel's Pretzels: 6%
More lender financing options
Wetzel's Pretzels
L&L Hawaiian Barbecue: 16 unique lenders · Wetzel's Pretzels: 58 unique lenders
Decision matrix uses publicly disclosed FDD and SBA loan data. Not a recommendation. Your best franchise depends on capital, market, operating capacity, and risk tolerance.
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L&L Hawaiian Barbecue vs Wetzel's Pretzels: Franchise Funding Comparison
Comparing L&L Hawaiian Barbecue and Wetzel's Pretzels is about more than brand preference. It's about which franchise fits your financial profile and funding strategy. Investment ranges from $200K to $600K.
L&L Hawaiian Barbecue has 19 SBA loans on record and Wetzel's Pretzels has 156. Those totals are cumulative history rather than a measure of current appetite. Both brands have an established underwriting path, though the lender that fits a specific deal still depends on its size, location and the buyer.
SBA 7(a) loans are the most common franchise funding vehicle, offering up to $5M with as little as 10% down. PeerSense connects franchise buyers with the specific lenders who have approved loans for these brands, not generic referrals, but lenders with actual franchise lending track records.
Data sourced from SBA loan records, Franchise Disclosure Documents, and public filings. Updated regularly. Not financial advice, consult with a lending professional before making investment decisions.
L&L Hawaiian Barbecue vs Wetzel's Pretzels, Frequently Asked Questions
Which is a better franchise investment, L&L Hawaiian Barbecue or Wetzel's Pretzels?
How much does a L&L Hawaiian Barbecue franchise cost compared to Wetzel's Pretzels?
Can I finance L&L Hawaiian Barbecue or Wetzel's Pretzels with an SBA loan?
Which has a lower SBA default rate, L&L Hawaiian Barbecue or Wetzel's Pretzels?
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Page Review
Reviewed by Edward L. Freeman, Founder and Managing Director, PeerSense
- PeerSense is a capital advisory firm that places commercial financing with direct capital sources; the capital source sets final terms.
- Edward L. Freeman founded PeerSense in January 2020.
- He is a Registered Franchise Consultant with Business Alliance, Inc., a credential issued in March 2022, and worked as a franchise consultant there from March 2022 to May 2023.
- His recorded experience includes a $22 million SBA construction loan, with about $16 million funded on the deal.
- In the 12 months through September 30, 2026, PeerSense tracked 912 publicly announced financings with a disclosed size of $361.32 billion. PeerSense Capital Data Report · Methodology page
Last reviewed LinkedIn profileAbout Edward Freeman