Sandwich shop comparisons

Submitted by Fayaz on Thu, 04/16/2009 - 1:51pm.

 

Royalty and Advertising Fees for some Sub & Sandwich Franchises
 
 
 
 
Subway
12.5 %
Quiznos
11 %
Mr. Hero
10.5%
Blimpies
10%
Jersey Mike’s
10%
Philly Connection
10%
Togo’s Eatery
10%
Zero’s Subs
Extreme Pita                                 
10%
9%
Firehouse Subs
9%
Jerry’s Subs and Pizza
9%
Burger King
8.5%
Charley’s Grilled Subs
8.25%
Capt. Subs
8%
Cousin Subs
8%
Hungry Howie’s Pizza and SUbs
8%
Subs Plus
8%
Great Outdoors Subs
7%
Lenny’s Sub Shops
7%
Moe’s Italian Sandwiches
7%
Nathan’s Famous
7%
Pickerman’s Soup & Sandwiches
7%
Port of Subs
6.5%
Sub Station II
6%
Baldinos Giant Jersey Subs
5%

 (Not verified but from internet sources deemed to be reliable)

 
 

Are you confused about which sandwich brand to get into? are you collecting data and perhaps getting nowhere? I have simplified some of the task here. I know there are many Sandwich and Sub brands out there. Do you know what questions to ask when evaluating the franchise, and then how to compare them and rank them so you can concentrate on the ones you like or the ones that make sense to you? Do you have the discipline to do the right homework on your own?. Just send me some details and an inquiry and I can advise accordingly, including matters of cash flow estimates and valuation

 

Quizno's

The Royalty and Advertising fee structure are 6% and 3%, total 9%

My research shows food costs to be in the 34-36% range from various blogs, e mails and financials

Currently struggling to launch their "Torpedo" line at a $4.00 price point. Owners are not happy as it affects their profits negatively

Market perception is that this brand is not going anywhere and franchisees are struggling in this economy. Low resale values, no protected territories

Most other operational costs are in line with other similar concepts, in areas such as Rent, Phone/fax, Labour, Bank and Credit Card charges, Utilities and other such P&L expenses

 

Blimpies

Heavier recognition on the East coast, struggling elsewhere. Not much news about them anywhere, but I suspect they have the same reputation as Q

 

#1 Subshop franchise

Extremely popular, hard to get into now, waiting list of applicants, everybody and their Uncle wants to get into this success machine. Is it too late to get in, is there still room to grow, is it still profitable, why can't I find a resale - these are the questions I get everyday 

Issues of cannibalisation of sales, no protected territory, yet some very profitable operations, others marginal  as would be expected in any such large franchise system. You either love it or hate it.

Royalties and Advertising, 8% and 4.5%, total 12.5%. Very strict code of conduct and penalties as outlined in their FDD

I see food costs in the 29-31% range depending on the area. All other costs appear to be similar in this sandwich category

 

EXTREME PITA 

We are just getting started; fabulous product, great support, plenty of room to grow in the franchise system - single, multi-unit and Area Developer opportunities

Royalties and Advertising, 6%** and 3%, total 9% with a reduction of 2%** for 2009** entrants, adjusted total 7%

Warmly welcomed by customers and landlords. Less confrontational, more empathy, more room for changes as they grow, adaptable, new generation menu, affordable

Similar cost structure to others in the same QSR in terms of Investment, and expenses, although you must do your own due diligence and costs can vary by region, project, operator abilities and more.

 

 

 

Browse this website or call me for more information and an in depth analysis

fayaz@mrfranchiseman.com, fayazk@extremepita.com

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