Philly's Famous Soft Pretzel
The total investment to open a Philly's Famous Soft Pretzel franchise ranges from $104,446 to $248,000. The initial franchise fee is $35,000. Ongoing royalties are 6% plus a 2% advertising fee.
What is the Philly's Famous Soft Pretzel franchise?
Philly's Famous Soft Pretzel sells soft pretzels and nonalcoholic drinks to customers looking for a snack. The estimated total initial investment to open is $104,446 to $248,000, and the initial franchise fee is $35,000.
The ongoing royalty is 6 percent of sales, and the advertising or brand fund fee is 2 percent. The franchise agreement term is 10 years.
The brand was founded in 1998 and is headquartered in Cherry Hill, NJ.
Loan Activity Score
21/100
SBA Default Rate
33.3%
Active Lenders
5
According to its Franchise Disclosure Document or public business records, Philly's Famous Soft Pretzel has 6 locations, all owned by franchisees. Public SBA loan records show 5 lenders made 9 loans to franchisees of Philly's Famous Soft Pretzel. PeerSense calculates Philly's Famous Soft Pretzel's score as 21 out of 100, using public SBA loan performance and recent lending activity.
Franchising since 1998 · 6 locations
$104,446 to $248,000
$35,000
6
6 franchised
Proprietary PeerSense metric
LimitedDistinct lenders in public SBA records for Philly's Famous Soft Pretzel
9
Total SBA loans
$167K
Average loan size
Source: public SBA 7(a) and 504 loan records through December 31, 2025
Referral fee at closing
SBA Lending Activity for Philly's Famous Soft Pretzel
Loan Activity Score Breakdown
Emerging (3 to 9 loans)
Are lenders increasingly or decreasingly funding this brand? Growing trends score highest.
Blended default rate (recent + all time) compared to NAICS sector peers.
Quality lenders actively backing this brand, with penalty for lender pullback.
FDD availability, Item 19 disclosure, and overall data completeness.
Geographic spread of SBA funded locations across states.
SBA Lending Performance
SBA Default Rate
33.3%
vs 10.3% peer avg
SBA Loans
9
Total Volume
$1.5M
Active Lenders
5
1 selective
States
4
vs. SBA Sector Average
SBA loan default rate vs. all franchises in the same NAICS sector, not limited to direct competitors
Key Highlights
Franchise Financing Resources
Data Insights
Key performance metrics for Philly's Famous Soft Pretzel based on SBA lending data
SBA Default Rate
33.3%
23.0% above peer avg
SBA Loan Volume
9 loans
Across 5 lenders
Lender Diversity
5 lenders
Avg 1.8 loans per lender
Investment Tier
Mid range investment
$104,446 to $248,000 total
Philly's Famous Soft Pretzel: Deep SBA Data
Brand specific metrics derived directly from SBA 7(a) approval records: peak lending year, leading state, average loan size, and lender concentration. PeerSense computes these per brand so capital advisors and prospective franchisees can benchmark this opportunity against the rest of the franchise universe.
Peak SBA Year
2012
3 approvals. The best year on record for Philly's Famous Soft Pretzel.
Top SBA State
New Jersey
5 SBA financed Philly's Famous Soft Pretzel locations, the densest operator footprint.
Average Loan Size
$167K
Median $145K. Use as a sizing anchor when modeling your own Philly's Famous Soft Pretzel unit.
Lender Concentration
77.8%
Concentrated
Share of Philly's Famous Soft Pretzel approvals captured by the top 3 SBA lenders.
Philly's Famous Soft Pretzel's SBA lending pipeline peaked in 2012 (3 approvals). Operator density is highest in New Jersey with 5 SBA financed locations. Average funded ticket sits at $167K, with the median at $145K. Lender mix is concentrated: the top three SBA lenders account for 77.8% of approvals. Credit decisions concentrate with a small group of incumbents.
Payment Estimator
Estimated Monthly Payment
$1,081
Principal & Interest only
Indicative only, as of October 1, 2026. Not a quote, commitment or offer of credit. Final pricing, leverage and terms are determined by the lender at underwriting, after full transaction materials are reviewed. PeerSense sources the file. The lender sets pricing. What these terms mean.
Locations
Philly's Famous Soft Pretzel, unit breakdown
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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