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Submarina Franchise Cost & Fees

Date Incorporation: 1987

Franchising Since: 1988

Headquarters: California

Description:  Submarina Restaurants operates a sandwich shop and restaurant which will offer the public great tasting food made from the finest ingredients available and competes with other submarine sandwich shops, delicatessens, fast food outlets, supermarkets, and specialty stores offering similar items. 

Franchise Offer:  The franchisor grants franchises, development rights and area developer rights for sandwich shops offering great-tasting food made from the finest ingredients available and operating under the "Submarina®" name. 
The franchisor also offers and grants certain qualified franchisees the right to represent them as area developers under the area developer agreement.

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

Training and Assistance: The initial training program is designed for the franchisee or their managing owner, designated manager and up to 2 other restaurant employees. There are approximately 32 hours of classroom training and 124 hours of on-the-job training.
The first phase of the program occurs at the franchisor's corporate office and their designated training facility in California. This phase of training consists of a combination of classroom and in-store training. The second phase of the training program requires an additional 60 hours of documented in-store operations training at the franchisor's designated training facility in California in an area developer's pilot restaurant, or at an approved Submarina restaurant.

Territory:  The franchisee may operate their restaurant only at a site approved by the franchisor. Under the franchise agreement the franchisee will not receive an exclusive territory.

Term of Agreement and Renewal: The term of the franchise agreement is 10 years and can be renewed for 10 years if certain conditions are met.

Obligations and Restrictions:  It is not required, but recommended, that the franchisee (or a managing owner) personally supervise the restaurant. Only a full-time, on-premises designated manager who devotes all his or her productive time and effort (at least 40 hours per week) to the restaurant's management and operation may serve as the restaurant's manager. The franchisee must offer and sell all the products and services authorized by the franchisor and may offer and sell only the products and services authorized by the franchisor.

Total Number of Units: 55 units by year end 2007

Total Number of franchises Units:  53 franchised units by year end 2007
Investment Tables:
Initial Investment:
Single franchise
Expenditures Low High
Franchise Fee $25,000 $25,000
Initial training expenses $1,000 $3,000
Rent and security deposit $5,700 $13,500
Leasehold improvements and construction $52,000 $135,000
Equipment and furnishings $85,000 $96,000
POS/back office computer system and credit card processor $13,000 $15,500
Signage $6,200 $10,000
Deposits, permits, licenses and other prepaid expenses $3,000 $10,000
Professional fees $500 $3,000
Office suppplies $1,000 $2,000
Grand opening advertising $3,000 $5,000
Opening inventory (food, uniforms and menus) $2,500 $3,500
Additional Funds (3 months) $20,000 $20,000
Total $192,900 $316,500


Ongoing fees:

Name of Fee Amount
Royalty Fee 0%, 4%, 5% or 6% of gross sales
Marketing and promotion fund contribution 4% of gross sales
Renewal fee 10% of then-current initial franchise fee
Franchise sales fund (only under area developer agreement) $250 to $1,000 per sub-area per month
Legal compliance costs (only under area developer agreement) Costs to prepare and register those portions of documents applicable to area developer
Collection Costs (only under area developer agreement) Proportionate share of costs incurred by the franchisor to collect amounts due from franchisees in development area


Date of FDD: November 20 2008


The above information has been taken from the UFOC/FDD of Submarina

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