BLIMPIE®
Date Incorporation: 1977
Franchising Since: 1985
Headquarters: New York
Description: A Blimpie franchisee operates a quick-casual restaurant serving items such as hot and cold sandwiches, including wraps, together with soups, salads, breakfast items, bakery items, dessert items, beverages, and other food items.
Franchise Offer: The franchisee is granted the right to establish and operate one or more Blimpie restaurants at locations approved by the franchisor, using the trademarks "Blimpie®" "Blimpie Subs & Salads®". Blimpie traditional restaurants are generally located in an in-line store, mall, shopping center, food court, free-standing building, or other typical quick-service location. A non traditional Blimpie restaurant may also be located within or operated in conjunction with another business, like a convenience store, airport, office building, department store, general merchandise retailer, hospital, stadium, university food service facility, or any other location as a complement to the primary business of the host facility or a unique or special venue Blimpie obtains through its national or regional relationships with a host/ authority (Special location).
Financial Assistance: The franchisor may, in their sole discretion, finance part of the initial franchise fee paid for the purchase of the first traditional restaurant franchise. The franchisor does not offer financing for: (i) the purchase of additional franchises for traditional restaurants; (ii) the purchase of initial or additional franchises for non-traditional restaurants; or (iii) the purchase of equipment. The franchisor may refer the franchisee to a third-party financial organizations for equipment-purchase financing.
Training and Assistance: Two of the restaurant's principal owners and one of the managers will complete the initial training which consists of 2 phases. Phase one consists of approximately 3 weeks of hands-on training at a certified Blimpie training site and phase two consists of 1 week of classroom sessions.
The principal owner or manager can attend additional training or retraining as well as periodic refresher training courses.
Territory: No exclusive territory is granted to the franchisee.
Term of Agreement and Renewal: The term of the franchise agreement is 10 years and can be renewed for up to 2 renewal terms of 5 years each, if certain conditions are met at time of renewal.
Obligations and Restrictions: The franchisor requires the franchisee or, if it is a corporation, partnership, limited liability company, or other business entity, the franchisee's principal owners, to take an active role in managing the restaurant. The restaurant must have at least one manager designated by the franchisee. If the franchisee is an individual, they may serve as manager, but it is not required. The franchisee must sell only those products and services that the franchisor have approved in writing, and the franchisee must sell all products and services that the franchisor specifies.
Total Number of Units: 26 units by year end 2007
Total Number of franchises Units: 26 franchised units by year end 2007
Investment Tables:
Initial Investment:
Single franchise – Traditional restaurant
| Expenditures | Low | High |
|---|---|---|
| Franchise Fee | $18,000 | $18,000 |
| Rent/Security Deposit | $6,000 | $18,000 |
| Lease review fee | $2,000 | $2,000 |
| Construction costs / Leasehold improvements / Architectural costs | $40,000 | $160,000 |
| Equipment and signage | $48,000 | $120,000 |
| Computer hardware, software (POS system) including first year phone support | $7,500 | $15,000 |
| Opening inventory | $5,000 | $10,000 |
| Grand opening fee | $3,000 | $3,000 |
| Initial program | $500 | $500 |
| Uniforms | $270 | $1,400 |
| Insurance premiums | $1,212 | $9,300 |
| Utility deposits | $250 | $1,500 |
| Professional services fees | $1,500 | $5,000 |
| Travel and living expenses during training | $2,000 | $5,000 |
| Additional Funds (3 months) | $15,000 | $30,000 |
| Total | $152,232 | $398,700 |
Single franchise – Nontraditional restaurant
| Expenditures | Low | High |
|---|---|---|
| Franchise Fee | $10,000 | $10,000 |
| Rent/Security Deposit | $0 | $18,000 |
| Lease review fee | $0 | $2,000 |
| Construction costs / Leasehold improvements / Architectural costs | $20,000 | $75,000 |
| Equipment and signage | $30,000 | $80,000 |
| Computer hardware, software (POS system) including first year phone support | $7,500 | $15,000 |
| Opening inventory | $2,500 | $5,000 |
| Grand opening fee | $3,000 | $3,000 |
| Initial program | $500 | $500 |
| Lease security | $0 | $36,000 |
| Uniforms | $270 | $1,400 |
| Insurance premiums | $1,212 | $9,300 |
| Utility deposits | $250 | $1,500 |
| Professional services fees | $1,500 | $5,000 |
| Travel and living expenses during training | $2,000 | $5,000 |
| Additional Funds (3 months) | $15,000 | $30,000 |
| Total | $91,032 | $296,700 |
Ongoing fees:
| Name of Fee | Amount |
|---|---|
| Royalty Fee | 7% of gross revenue |
| Advertising fee | 4% of Gross Revenue |
| Initial program fee | $40 per week during first 50 weeks of operation |
| POS system data polling fees | Up to $20 per week |
| POS help des and support fees | Up to $100 per month |
| Annual software maintenance contract | $600 - $800 per year |
| Renewal fee | $5,000 |
| Insurance | Varies |
Date of FDD: April 18 2008
The above information has been taken from the UFOC/FDD of Blimpie
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