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Charley's Grilled Subs Franchise Cost & Fees

Date Incorporation: 1990

Franchising Since: 1990

Headquarters: Ohio

Description: The franchisee will operate a quick-service restaurant under the name Charley's Grilled Subs® at mall food courts, stripcenters and similar locations. The menu features. Philadelphia-stylecheesesteak grilled subs and several other varieties of fresh grilled subs,french fries, salads, fresh lemonade and soft drinks.

Franchise Offer: The franchise on is to own and operate a quick-service restaurant in what has come to be known as the "fast-casual" segment of the restaurant industry.

Financial Assistance: No direct or indirect financing is offered by the franchisor nor do they guarantee any note, lease or obligation.

Training and Assistance: The 5-week initial training includes instruction with respect to the franchisor's standards, methods, procedures and techniques for a minimum of 2 and a maximum of 3 management persons per franchise per training class. This training program is generally conducted at the franchisor's training center in Columbus, Ohio as well as certified regional franchised restaurants. A representative will come to the restaurant for at least 2 days of pre-opening operations supervision and marketing assistance and 5 days of supervision and assistance during the initial opening.

Territory: The franchise agreement grants the franchisee the right to operate a restaurant at a specific location. The franchisee is not granted any territorial or exclusive rights.

Term of Agreement and Renewal: The term of the franchise agreement is 10 years and can be renewed for one additional 10-year term.

Obligations and Restrictions: In the typical case, the franchisor requires that the franchisee personally participate in the actual operation of their first restaurant. Certain key persons should also participate in the management of the restaurant. If the franchisor agrees that the franchisee will not personally participate in the operation of their first restaurant, the designation of an on-premises manager who has successfully completed the training program is required. The franchisee must serve at the restaurant all of the products required by the franchisor. The franchisee can only sell the products from a restaurant on a retail basis.

Total Number of Units: 224 units by year end 2007

Total Number of franchises Units: 201 franchised units by year end 2007

Investment Tables:

Initial Investment:

Expenditures Low High
Franchise Fee $19,500 $19,500
Rent - first month $2,000 $10,000
Leasehold improvements $40,000 $250,000
Equipment / fixtures / signage $40,000 $80,000
Architect $5,000 $12,000
Grand opening fee $5,000 $5,000
Travel and living expenses associated with initial training $2,000 $2,000
Start-up inventory/ supplies and additional funds $10,000 $20,000
Insurance and misc. deposits $3,000 $10,000
Total $126,500 $408,500

 

Ongoing fees:

Name of Fee Amount  
Royalty Fee 5% of gross sales or $250, whichever is greater
Advertising ongoing local advertising 3% of gross sales
Charley's advertising fund 0.25% of gross sales
Cooperative regional advertising 3% of gross sales
Refurbishing costs Actual costs incurred by the franchisee
Renewal fee $10,000 (currently)

 

The above information has been taken from the UFOC/FDD of Charley's Grilled Subs

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