Charleys Philly Steaks Franchise
Audited FinancialsRisk Score
Pending analysis
Investment Range
$203,736 - $984,732
Franchise Fee
$12,250
Min Cash Required
$24,000
Total US Locations
813
Business Summary
Charleys Restaurants operates quick-service restaurants that specialize in Philadelphia-style cheese steaks, buffalo style chicken wings, and various grilled subs, french fries, lemonade, and soft drinks. Charleys Restaurants can be found in mall food courts, airports, military bases, inline locations, freestanding locations, and within Walmart Stores.
Corporate History
Gosh Enterprises, Inc. (Charleys) was incorporated in Ohio in May 1990 and began offering franchises for Charleys Restaurants at that time. The company's founder, Charley M. Shin, opened the first Charley's Steakery restaurant as a sole proprietorship in March 1986. Charleys also has affiliates that own and operate company-owned Charleys Restaurants. Additionally, an affiliate, Lenny's Holdings LLC, offers franchises for Lennys Grill & Subs Restaurants, a separate brand acquired in November 2019, which also has franchised and company-owned locations.
Financial Overview
Investment Range
$203,736 - $984,732
Franchise Fee (Low)
$12,250
Franchise Fee (High)
$24,500
Minimum Cash Required
$24,000
Royalty %
6%
Marketing %
1%
Equipment Costs (Low)
$100,931
Equipment Costs (High)
$680,000
Working Capital
$32,000
Audited Financials
Yes
Offers Financing
No
Audit Opinion
Unqualified opinion
Financial Health Notes
Charleys appears to be in good financial health, showing consistent growth in net income over the past three years, with $15.4 million in 2024, $12.8 million in 2023, and $3.9 million in 2022. The company's cash balance has also increased significantly, reaching over $29 million by the end of 2024. While Charleys has a revolving line of credit with $20 million outstanding and co-guarantees debt for related parties (approximately $3.1 million in lease payments and $4.8 million in debt), the financial statements received an unqualified opinion from independent auditors, indicating no significant concerns about the company's ability to continue operations. There is also a marketing fund liability of over $2.1 million in 2024, representing funds collected from franchisees in excess of marketing expenses.
Financing Details
Charleys does not offer any direct or indirect financing to its franchisees and does not guarantee any notes, leases, or other obligations. However, for Charleys Restaurants operating in Walmart Locations, an affiliate, CPS Sites LLC, enters into a Sub-Sublease Agreement with the franchisee for the premises. This arrangement includes an advance payment, one-time placement and plan review fees, weekly rent based on gross sales (with a minimum), and weekly digital menu board support fees, as well as a leased premises improvement charge and an architectural fee where applicable. These payments are made to CPS Sites LLC, an affiliate, which then passes through certain amounts to other landlords.
Performance Metrics
Total US Locations
813
Franchised Units
744
Corporate Units
69
Avg Square Footage
1,450
Franchising Since
1990
Legal & Compliance Analysis
Recent Litigation
No
Bankruptcy
No
Litigation Summary
Charleys has no litigation or legal proceedings to report in Item 3 of the FDD.
Bankruptcy History
Charleys has no bankruptcy history to disclose in Item 4.
Agreement Terms
Initial Term
10 years
Renewal Conditions
To renew the franchise, Charleys franchisees must provide 180 days' prior written notice of their desire to renew. They must be in compliance with all terms of their current agreements, sign a new franchise agreement (which may have materially different terms), execute a general release of claims against Charleys, pay the standard renewal franchise fee, and remodel their Restaurant to meet current brand standards and specifications.
Training & Support Program
Franchisor Assistance
Before opening, Charleys provides guidance for site selection and lease negotiation, furnishes prototype plans for restaurant development, and offers a list of approved suppliers for equipment and signs. Initial training is provided to the franchisee or operating partner and manager. After opening, Charleys offers periodic and additional training, ongoing guidance on the System (including improvements and changes), modifications to the Operations Manual, and administration of the Marketing Fund for advertising and related programs. Charleys also conducts inspections and observations of restaurant operations.
Initial Training Hours
150
Training Location
Columbus, Ohio
Ongoing Support
After opening, Charleys provides ongoing support through periodic and additional training courses, quality assurance programs, conferences, and seminars for franchisees and their employees. Guidance regarding the System, including improvements and changes, is furnished via the Operations Manual, bulletins, and consultations. Charleys regularly modifies the Operations Manual to reflect updated standards and procedures and administers the Marketing Fund for advertising campaigns. The franchise also conducts inspections, observations, and testing of restaurant operations.
Franchise Requirements
Ideal Candidate Profile
Charleys seeks franchisees who possess good character and reputation, sufficient business experience, aptitude, and financial resources. Ideal candidates, or their Operating Partner, must be individuals who will exert full-time and best efforts to the development and operation of their Charleys Restaurant, and not engage in other businesses that conflict with their obligations or require substantial time commitments.
Industry Experience Required
No
Management Experience Required
No
Sales Experience Required
No
Technical Skills Required
No
Operational Details
Location Type
retail
Owner Participation
Full-Time
Territory Type
Non-Exclusive
Staff Count
21
Staffing Notes
Charleys franchisees must establish an employee training program that meets the franchisor's standards. Restaurant employees, including crew members and managers, are required to actively use Charleys' learning management platform, which is the primary tool for delivering training programs. All crew members must be properly certified for their positions to ensure brand standards are met. Franchisees are responsible for maintaining a competent, conscientious, and trained staff in numbers sufficient to promptly serve customers, including adhering to specified positions and minimum staffing levels that Charleys may set in the Operations Manual. Charleys does not provide assistance with employee hiring.