Charleys Franchise Cost (2026): Fees, Investment, 3-Unit Rule

Per its April 28, 2026 FDD, Charleys charges a $24,500 first franchise fee and estimates $202,690 to $1,004,447 per restaurant across its Item 7 formats; its official FAQ, checked 2026-10-14, requires new franchisees to buy at least three licenses, a minimum not stated in FDD Items 5 or 12.

The franchisor is Gosh Enterprises, Inc. The FDD uses Charleys as the restaurant name and lists marks including Charleys Philly Steaks and Charleys Cheesesteaks•Wings. The franchise site also uses Charleys Cheesesteaks. The FDD linked below is dated by its April 28, 2026 cover, despite the hosted filename ending in 2025.

Item 7: investment by format

The FDD distinguishes CPS restaurants in mall food courts, airports, military bases and inline locations from CPSW restaurants, which additionally offer chicken wings and other chicken-based menu items. Walmart CPSW locations have their own investment table.

April 28, 2026 FDD format	Item 7 total initial investment	Location basis in Item 7
CPS	$203,492 to $696,266	Leased strip center, mall food court, airport or military base
CPSW outside Walmart	$202,690 to $1,004,447	Leased inline strip center or freestanding site
CPSW in Walmart	$252,061 to $646,224	Walmart location

For a sandwich-brand comparison, Which Wich’s March 21, 2025 FDD estimates a total initial investment of $253,500 to $822,250.

Each total includes a $24,500 first franchise fee and additional funds for a three-month period. Those additional funds are $24,000 to $30,000 for CPS and $24,000 to $40,000 for either CPSW format. The Item 7 guide explains how to compare the rows within the correct format instead of treating one broad range as a quote for every location.

Item 5 fees and the site’s three-license rule

The official FAQ, checked 2026-10-14, states: “We require that all new franchisees buy a minimum of three licenses.”

Item 5 fee	Amount	Payment terms
First restaurant franchise fee	$24,500	Due when signing the Franchise Agreement; nonrefundable
Second and each subsequent restaurant	$15,000 each	Due when signing the applicable Franchise Agreement; nonrefundable
Site-selection extension	$2,500 per approved extension	If an acceptable site has not been agreed upon within 180 days; approval is discretionary

Item 5 does not state a separate development fee or minimum number of licenses. Its fee timing is tied to signing each Franchise Agreement, not to each restaurant’s opening. The Item 5 guide explains the distinction between an initial franchise fee and a separate development payment.

One restaurant versus the site’s three-license commitment

The three-restaurant column below is arithmetic using FDD figures, not an FDD multi-unit estimate. It assumes all three restaurants use the same format and holds every non-fee cost at the corresponding Item 7 estimate. Because each Item 7 table includes a $24,500 fee, the calculation subtracts $19,000 to reflect the two $15,000 additional-restaurant fees: 3 × the Item 7 total − 2 × ($24,500 − $15,000).

Cost	One first restaurant, FDD	Three restaurants, calculated
Standard franchise fees	$24,500	$54,500 ($24,500 + 2 × $15,000)
CPS total investment	$203,492 to $696,266	$591,476 to $2,069,798
CPSW outside Walmart total investment	$202,690 to $1,004,447	$589,070 to $2,994,341
CPSW in Walmart total investment	$252,061 to $646,224	$737,183 to $1,919,672

Run the three-unit math on your own numbers

Our free startup-cost worksheet follows the FDD's Item 7 rows, so you can total a multi-unit commitment from your own quotes. Plus the due-diligence kit.

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The franchise-fee row is already included in the investment totals. Do not add it again. These calculations are planning scenarios, not price quotes or a disclosed three-unit development package.

Item 12: territory and opening schedule

Item 12 grants the right to operate at a specific location, without an exclusive territory. It provides no option, right of first refusal or similar right to acquire additional franchises. It does not specify a three-unit development schedule or a multi-unit minimum.

The FDD does give individual-restaurant timing in Item 11:

• Estimated time from signing to opening: 180 to 360 days, subject to the factors described there.
• Submit a complete site application within 180 days of signing.
• Lease or acquire the site within 30 days of approval, or within 30 days of signing if already approved.
• Begin construction or renovation within 90 days of acquiring the premises, finish within 90 days after starting, and open within 30 days after completion. Extensions require approval.

These individual-location deadlines do not establish a timetable for opening three restaurants. The FAQ’s license minimum and the FDD’s location-specific terms describe different parts of the offering; neither supplies a disclosed three-unit opening calendar.

Item 6: royalty, advertising and other fees

The royalty is the greater of $300 or 6% of Gross Sales per week, payable on or before Thursday based on the preceding week’s sales. Item 6 defines Gross Sales to include restaurant-related product and service sales, including sales away from the restaurant, excluding specified collected sales or service taxes, customer refunds, adjustments and promotional discounts.

Format	Current total advertising and promotion obligation	Marketing Fund	Local store marketing
CPS and CPSW in Walmart	3% of Gross Sales	1% of Gross Sales	2% of Gross Sales
CPSW outside Walmart	4% of Gross Sales	1% of Gross Sales	3% of Gross Sales

Item 6 allows the franchisor to increase its advertising and promotion obligation to 5% of Gross Sales and reallocate it among the fund, local marketing and a cooperative. Its notes also allow cooperative contributions to bring the combined obligation above 5%; no cooperatives existed as of the FDD date. The Item 6 guide explains why the calculation basis and minimum charge matter alongside the percentage.

Other disclosed charges include $500 to $1,500 for failed inspections or noncompliance, plus the stated expense reimbursement, and $1,500 to $3,500 per program for ongoing training. Walmart-specific charges include a $6.50 monthly technology fee, $27.50 weekly digital menu board support, and a $150 monthly internet access charge when the stated alternative-provider condition applies. These are selected Item 6 charges, not the complete fee list.

What the site says versus the FDD

The official site figures below were checked 2026-10-14. The format-specific April 2026 FDD totals above are the cost answer for this page.

Source	Published investment	Comparison with April 2026 FDD
Official FAQ	$203,736 to $984,732	Matches none of the three Item 7 totals
Official cost page	$202,690 to $1,004,447	Matches non-Walmart CPSW exactly
Official franchise home page	$202,690 to $1,004,447	Matches non-Walmart CPSW exactly

The FAQ and home page’s $24,500 first fee and $15,000 additional fee agree with Item 5. The FAQ’s 6% royalty summary omits Item 6’s $300 weekly minimum. The home page also lists $650,000 net worth and $200,000 liquid cash; those are site qualification figures, not Item 7 investment totals or a disclosed per-license multiplication rule.

The supplied site pages do not explain why the FAQ investment range differs. No format assignment or explanation is assumed for that range.

Item 20: restaurant counts

Item 20’s year-end outlet summary reports the following counts. Item 1 identifies the latest counts as covering the United States and its territories; it separately reports 60 franchised restaurants abroad at December 31, 2025.

Year-end	Franchised	Company-owned	Total
2023	700	61	761
2024	744	69	813
2025	766	60	826

How other brands describe multi-unit applicants

Caribou Coffee’s franchising page, checked 2026-10-13, states: “Minimum commitment of 10+ locations”. See the Caribou Coffee franchise cost page for its separate disclosure context.

Yogurtland’s franchise page, checked 2026-10-13, states: “We are looking for multi-unit developers.” That wording does not specify a numeric minimum.

SBA Franchise Directory: Charleys Philly Steaks appears in the SBA’s Franchise Directory file effective October 9, 2026 (SBA Franchise Identifier Code S0360; franchisor certification marked received). A listing is what a lender checks for brand eligibility; it is not an endorsement, and your own eligibility as a borrower is assessed separately. See how to check the SBA Franchise Directory.

Is it still a low-cost option?

The lowest April 2026 Item 7 floor is $202,690 for one CPSW restaurant outside Walmart. Applying the site’s three-license requirement and Item 5 fee reductions produces a calculated $589,070 low-end scenario for three of that format. That is the relevant scale for comparing the site’s entry requirement with a single-restaurant budget.

For a smaller budget, the food franchises under $100,000 guide explains the difference between a franchise fee and a complete startup budget. For Charleys, use the intended format’s Item 7 rows, the applicable agreement deadlines and the full fee schedule when preparing a budget.