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Below is an in-depth analysis and side-by-side comparison of Tubby's Sub Shops vs Zero's Subs including start-up costs and fees, business experience requirements, training & support and financing options.
Start-Up Costs and Fees |
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Investment | $112,900 - $293,500 | $150,000 - $250,000 |
Franchise Fee | $17,500 - $20,000 | $15,000 |
Royalty Fee | 4%-6% | 6% |
Advertising Fee | 4% | - |
Year Founded | 1968 | 1967 |
Year Franchised | 1978 | 1996 |
Term Of Agreement | 10 years | 15 years |
Term Of Agreement | 10 years | 15 years |
Renewal Fee | - | 10% of current franchise fee |
Business Experience Requirements |
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Experience | - | |
Financing Options |
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In-House/3rd Party | In-House/3rd Party | |
Franchise Fees | No/Yes | No/Yes |
Start-up Costs | No/Yes | No/Yes |
Equipment | No/Yes | No/Yes |
Inventory | No/Yes | No/Yes |
Receivables | No/No | No/No |
Payroll | No/No | No/No |
Training & Support |
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Training | On-The-Job Training: 92 hours Classroom Training: 28 hours Additional Training: Company store | - |
Support | Newsletter Meetings/Conventions Toll-Free Line Grand Opening Field Operations Site Selection | Newsletter, Meetings, Toll-free phone line, Grand opening, Internet, Field operations/evaluations |
Marketing | National Media Social media | Ad slicks, National media |
Operations |
20% of all franchisees own more than one unit Number of employees needed to run franchised unit: 3 - 4
Absentee ownership of franchise is allowed. (90% of current franchisees are owner/operators)
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Number of employees needed to run franchised unit: 10 Absentee ownership of franchise is allowed. (70% of current franchisees are owner/operators) |
Expansion Plans |
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US Expansion | Yes | - |
Canada Expansion | No | No |
International Expansion | No | Yes |
Founder Richard Paganes opened the first Tubby's Sub Shop in 1968 in St. Clair Shores, Michigan. The company began franchising in 1978 and has locations in the Midwest and southeastern United States. Tubby's Sub Shop, which began as a family-owned and -operated business, is now public and is based in Roseville, Michigan.
In 1967, Gene Schmidt started ZERO'S SUBS. Zero’s Subs is one of the largest regional sandwich franchises in the U.S. with more than 30 restaurants nationally. Since its inception in Virginia Beach in 1967, Zero’s Subs has created a proven fast, casual concept which offers high-quality foods, such as hot oven-baked subs, hearth-baked bread, Hormel meats, buffalo chicken wings, innovative health-conscious salads, wraps and pizza - all under one roof.