Wetzel's Pretzels vs LaMar's Donuts Franchise Comparison

Below is an in-depth analysis and side-by-side comparison of Wetzel's Pretzels vs LaMar's Donuts including start-up costs and fees, business experience requirements, training & support and financing options.

Start-Up Costs and Fees
 
Wetzel's Pretzels Franchise
LaMar's Donuts Franchise
Investment $126,600 - $405,850$288,500 - $366,500
Franchise Fee $35,000$28,500
Royalty Fee 7%5%
Advertising Fee 1%-
Year Founded 19941960
Year Franchised 19961993
Term Of Agreement 10 years10 years
Term Of Agreement 10 years10 years
Renewal Fee --


Business Experience Requirements
 
Wetzel's Pretzels Franchise
LaMar's Donuts Franchise
Experience
  • General business experience

  • Industry experience
  • General business experience
    		•

    Financing Options
     
    Wetzel's Pretzels Franchise
    LaMar's Donuts Franchise
      In-House/3rd PartyIn-House/3rd Party
    Franchise Fees No/YesNo/No
    Start-up Costs No/YesNo/No
    Equipment Yes/YesNo/No
    Inventory No/YesNo/No
    Receivables No/NoNo/No
    Payroll No/NoNo/No

    Training & Support
     
    Wetzel's Pretzels Franchise
    LaMar's Donuts Franchise
    Training On-The-Job Training: 40 hours Classroom Training: 40 hours As needed
    Support Newsletter Meetings/Conventions Toll-Free Line Grand Opening Security/Safety Procedures Field Operations Site Selection Franchisee Intranet Platform Newsletter, Meetings, Toll-free phone line, Grand opening, Field operations/evaluations
    Marketing Ad Templates Social media SEO Email marketing Loyalty program/app Co-op advertising, Ad slicks, National media, Regional advertising
    Operations 20% of all franchisees own more than one unit

    Number of employees needed to run franchised unit: 10

    Absentee ownership of franchise is allowed. (100% of current franchisees are owner/operators)

    Number of employees needed to run franchised unit: 15

    Absentee ownership of franchise is allowed. (75% of current franchisees are owner/operators)

    Expansion Plans
     
    Wetzel's Pretzels Franchise
    LaMar's Donuts Franchise
    US Expansion Yes-
    Canada Expansion NoNo
    International Expansion YesNo

    Company Overviews

    About Wetzel's Pretzels

    Wetzel's Pretzels founded by Rick Wetzel & Bill Phelps, former marketing executives in 1994. 1st Wetzel's Pretzels located in South Bay Galleria in Southern California. First store was opened in 1995 Century City, Hollywood.
    In 1996 Wetzel's Pretzels began franchising. Currently they have locations across United States (Universal City, Staples Center, Dodgers Stadium, Disneyland, Disney world) & internationally. Currently co-branding relationship with Cold Stone Creamery, Swensen's, Juice It Up and more.
    Beginning of 2016 Wetzel's franchise fast food restaurants had 298 locations out of them 269 US locations; 2 in Canada; 19 worldwide; and 8 owned by the company itself.

    Popular products:
    Pretzels, consisting of several different flavors
    Frozen Lemonade, sold in a variety of flavors.
    Frozen Granita, a frozen version of the Italian dessert
     
    The franchisor offers 3 franchise programs:
    1. A single Wetzel's Pretzels Bakery. The total investment necessary to begin operation of a Wetzel's Pretzels Bakery ranges from $164,950 to $405,850. This includes approximately between $42,350 and $50,750 that must be paid to the franchisor. If Wetzel's Pretzels grants you a license to operate a Remote Mobile Unit under a Remote Mobile Unit Addendum to your Franchise Agreement, you will also pay it a fee of $5,000 for a Remote Mobile Unit.
    2. Multiple Wetzel's Pretzels Bakeries within a defined area pursuant to a Multi-Unit Development Agreement. There is an initial development fee of $15,000 multiplied by the number of Bakeries which you must open, plus the balance of the initial franchise fee ($20,000) for your first Franchise Agreement. You will pay an initial franchise fee of $35,000 for each Bakery ($22,500 for a second Bakery in the same mall). However, the franchisor will credit the development fee against the initial franchise fees (at the rate of $15,000 for the second and each subsequent Franchise Agreement).
    3. A single Wetzel's Pretzels Concession Truck or Trailer. The total investment necessary to begin operation of a Wetzel's Pretzels Concession Truck or Trailer ranges from $126,600 to $275,850. This includes approximately between $9,000 and $14,750 that must be paid to the franchisor.
    "Entrepreneur
    #497 in Franchise 500 for 2020.








    About LaMar's Donuts

    Ray Lamar found his way into the donut business at the age of 17, working as a fryer at a Kansas City, Missouri, shop. Lamar made his way up to being a partner in the company, but World War II cut the partnership short. Upon his return, Lamar earned a degree in economics and began a career as a stockbroker, but donuts remained the business he truly loved.

    In 1960, nearly 30 years after first manning the fryer, Lamar opened his first LaMar's Donuts shop in Kansas City. The company began franchising in 1993 and is now based in Englewood, Colorado.