Philly Pretzel Factory Franchise

The franchisor, Soft Pretzel Franchise Systems, Inc., was formed in Pennsylvania on October 12, 2004, and began offering franchises in December 2004. Its office is in Bensalem, Pennsylvania. The April 30, 2026 FDD states that it has no parents or predecessors.

The earlier operating history belongs to affiliate An Original Soft Pretzel Factory, Inc., formed in June 1998, which began operating a Philadelphia pretzel business that month. The affiliate also operated another location from 2004. It had three franchises from August 2003 until 2007, when it transferred those agreements to the current franchisor. This separates the original operating business from the later franchise company.

Traditional shops offer either full production, making and baking products onsite, or an oven-ready format, baking premade products purchased from approved sources. Nontraditional shops use the oven-ready format in smaller or special venues, including big-box retailers and supermarkets. The FDD describes a Walmart master-lease arrangement; such locations also carry sublease and landlord requirements. Affiliate DLB Pretzels supplies certain pretzel products, while Cone Guys Holdings supplies certain cone products to shops offering optional ice cream.

Item 2 identifies Daniel Dizio and Leonard M. Lehman as co-founders of both the franchisor and its original operating affiliate. As of the April 2026 disclosure, Dizio serves as chief executive officer; Martin Ferrill has served as president since September 2011, and Chris Dowling as vice president of training since January 2022. This documented leadership history accompanies the distinction between the 1998 operating business and the 2004 franchise company.

The April 30, 2026 FDD provides initial tuition-free training for up to four people. The individual owner, or at least one principal of a franchisee entity, must attend and complete it to the franchisor’s satisfaction. Additional people accompanying the owner cost $1,000 each. Training and opening must be completed within 12 months of signing the franchise agreement. At least one person who has completed initial training must supervise the shop onsite throughout business hours. An approved trained manager can supervise day-to-day operations.

Initial training runs for five consecutive days at the Bensalem training center or another designated location, followed by three to five days at the franchisee’s shop. Item 11 permits the first portion to be reduced to four days for a nontraditional shop because that format does not require mixing and twisting onsite. The agreement describes five days without that exception, and the nontraditional addendum does not amend the training clause; buyers should clarify the applicable schedule. Sessions are arranged as needed.

The training table separately reports 40 hours of combined classroom and hands-on instruction, 10 hours of online modules and 45 hours of onsite instruction at the shop. Topics include mixing and twisting, potting and baking, sales systems and customer relations, safety, sanitation, equipment maintenance, marketing, staffing and financial management. The production topics must be read with the format-specific requirements. Training materials are provided without an additional charge; franchisees pay travel, lodging, meals and employee salaries.

Additional and replacement managers must complete initial training. Item 11 lists a current $1,000-per-person charge, while Item 6’s additional-training table and note list a current $0 charge with the right to increase it. This difference requires clarification before relying on a replacement-training price. Item 11 also refers to mandatory additional training, while agreement section 8.3.3 says additional or refresher courses are optional. The agreement provides then-current tuition and owner-paid attendance expenses; the reviewed clauses do not specify a fixed refresher duration or annual schedule. Owners must continue instructing employees under the operating manual.

Before opening, the franchisor reviews proposed sites and provides design, layout, equipment and supplier specifications. Owners hire approved architects, engineers and contractors, obtain required permits and handle the buildout. The operating manual is supplied digitally, with a physical copy on request. Oven-ready inventory is supplied upon payment; the franchisor does not deliver or install equipment, signs, fixtures and supplies. Nontraditional locations also follow landlord requirements for hours, signage, equipment and use of the premises.

After opening, support includes updated standards and supplier information, consultation on merchandising, promotion, layout, sales and operating matters, and periodic assistance as the franchisor considers appropriate. Telephone, email or onsite guidance depends on the chosen method and personnel availability. Additional support currently costs $1,000 per person per visit of up to five days, plus representative travel and accommodation expenses, with the right to increase the fee. Services may be withheld for unpaid amounts.

The franchisor may hold a mandatory annual conference lasting two or three days, no more than once a year, at a selected location. Franchisees pay attendance expenses, including transportation, lodging, meals and salaries; absence without prior consent carries a $1,500 charge. Opening advertising requires at least $5,000, including required giveaways. The existing system-wide brand fund currently receives 2% of weekly Gross Sales, with a possible increase to 4%; spending in a particular franchise territory or equal direct benefit is not guaranteed.

Technology. Owners use required computer, POS and credit-card systems and acquire designated software or applications under the applicable standards. The FDD reserves rights to require future hardware and software; the absence of a current maintenance-contract charge is not a promise that technology remains free.

Source: Philly Pretzel Factory FDD issued April 30, 2026, Items 1, 2, 6, 11 and 15 and Franchise Agreement Sections 8 and 9.

Philly Pretzel Factory gives a retail-oriented owner a focused product range and a choice of production or oven-ready operating formats. Initial training, product standards and business guidance provide a framework for running the shop and developing its staff. The strongest fit is an owner prepared to manage customer service, inventory and employees, follow the operating system and assess the location and format requirements carefully.

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