Date: Fri, 19 Dec 1997 17:59:29 GMT Server: Apache/1.1.1 Content-type: text/html Content-length: 8742 Last-modified: Fri, 12 Sep 1997 19:11:13 GMT Miami Subs Grill - Frequently Asked Questions

Frequently Asked Questions Regarding the
Miami Subs Grill Franchisee Opportunity


The following information is provided to you to assist in your evaluation of our franchise opportunity. As you progress through the information gathering process, we will be able to answer additional questions and provide you with specific information required by the Federal Trade Commission.

  1. What type of franchises are available?

    The company currently offers three types of franchise opportunities:
    1. Traditional
    2. Non-Traditional
    3. Express

  2. What is the cost of a franchise?

    The following represents the initial franchise fee for various locations:
    1. Traditional Restaurants - $25,000 per unit
      • Area Development Agreements require a Development Fee of $5,000 for each site to be developed in an exclusive area.
    2. Non-Traditional (C-Store/Gas Station) - $15,000 per unit, plus
      • Area Development Agreements require a Development Fee of $3,000 for each (Non-Traditional) site to be developed in a limited exclusive area
    3. Express - $15,000 per unit.
    4. The cost of other types of Non-Traditional development may vary depending on the type of location and the business environment.
    5. International Franchise Agreements will be developed under a Master Franchise Agreement. Specific terms and conditions will be determined on a country-by-country basis.

  3. What are the on-going royalty fees?

    Royalty fees are based on gross revenues. Percentages for the different types of locations are as follows:
  4. What are the on-going Advertising Fees?

    Each restaurant must contribute one percent (1 %) of monthly sales to support a Production Fund. In addition, each restaurant must contribute two percent (2%) of monthly sales to support their Regional/Local Advertising Fund and a Regional Co-Op if one is established.

  5. Who is responsible for finding approved sites?

    Miami Subs will provide each franchisee with a real estate orientation package to assist in the identification and selection of appropriate sites. We will also provide a Site Submission package which must be completed by the franchisee. It is the responsibility of the franchisee to identify potential sites and submit the completed package on each site to Miami Subs for approval. Our Real Estate Department will review each package and visit each site prior to the site being presented to our Real Estate Committee for final consent.

  6. What is provided by the company to assist in the construction process?

    The franchisee will be furnished with specifications for prototype lay-outs of a Miami Subs restaurant. The franchisee will be responsible for retaining a local architect to prepare the plans to meet all local requirements for construction and specifications to develop each individual site. The company will review all plans and inspect the site during construction for final approvals.

  7. Are there any types of financing or leasing programs available to Miami Subs Grill franchisees?

    Miami Subs Inc. enters into arrangements with certain financing sources to provide financing/leasing for the purchase of equipment, seating, signage, and other items necessary to operating a Miami Subs Grill restaurant. The terms and conditions of these programs are set by these capital lenders and may vary.

  8. What type of training is required to become a Miami Subs Grill franchisee?

    A comprehensive training program of in-store and classroom participation is required for all restaurant management. A traditional free-standing restaurant requires three (3) managers to complete a six week training program to become certified. Smaller restaurants with a limited menu will require two (2) managers to become certified by attending a three to four week training program, depending on the size of the operation.

  9. What type of on-going support will I receive?

    Each franchised restaurant will be assisted by an Area Manager to provide on-going operational guidance. Each Miami Subs Grill will be supported by an "Opening Team" to assist in the training of crew personnel and to support the franchise management team to assure a smooth opening of the restaurant to the public.

    The Marketing Department will coordinate the "Grand Opening" activities for each restaurant and support each franchisee in the development of effective local and regional marketing programs.

    Additional opening support will be provided to each franchise in the areas of training, operational control, marketing and product development.

    Each franchise will be represented by elected members on our Franchise Advisory Committee

  10. What is the term of a franchise agreement?

    Twenty years is the standard time-frame for each franchise agreement.

  11. Can a Miami Subs Grill franchisee sell a restaurant?

    Yes, you have the opportunity to sell your restaurant to an approved and qualified buyer. There is a transfer fee along with other requirements that are explained in detail in our Franchise Offering Circular.

  12. Approximately how long does it take to open a Miami Subs Grill restaurant?

    For a traditional new free-standing restaurant, the process will usually require six to nine (6-9) months. This includes 60 - 120 days to select a site and receive approval. At that point, an additional period of 90 - 150 days is allocated to complete plans, obtain permits and complete construction.

    Remodeled units or Non-Traditional locations may be able to be developed in a shorter time span.


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