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Below is an in-depth analysis and side-by-side comparison of Tubby's Sub Shops vs Zoup! Fresh Soup Company 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 | $355,900 - $648,500 |
Franchise Fee | $17,500 - $20,000 | $39,900 |
Royalty Fee | 4%-6% | 6% |
Advertising Fee | 4% | 1% |
Year Founded | 1968 | 1998 |
Year Franchised | 1978 | 2003 |
Term Of Agreement | 10 years | 5 years, Renewable for 3 additional 5 year periods |
Term Of Agreement | 10 years | 5 years, Renewable for 3 additional 5 year periods |
Renewal 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/Yes |
Payroll | No/No | No/Yes |
Training & Support |
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Training | On-The-Job Training: 92 hours Classroom Training: 28 hours Additional Training: Company store | On-The-Job Training: 72 hours Classroom Training: 40 hours |
Support | Newsletter Meetings/Conventions Toll-Free Line Grand Opening Field Operations Site Selection | Purchasing Co-ops Newsletter Meetings/Conventions Toll-Free Line Grand Opening Online Support Security/Safety Procedures Field Operations Site Selection Proprietary Software Franchisee Intranet Platform |
Marketing | National Media Social media | Co-op Advertising Ad Templates National Media Regional Advertising Social media SEO Website development Email marketing Loyalty program/app |
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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30% of all franchisees own more than one unit Number of employees needed to run franchised unit: 10 - 14 Absentee Ownership Allowed |
Expansion Plans |
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US Expansion | Yes | No |
Canada Expansion | No | Yes |
International Expansion | No | No |
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.
The first Zoup! opened in 1998 in Southfield, MI, a suburb of Detroit. Over the next five years, the founders opened five more Detroit-area locations, and in 2003 they began to franchise the concept. Zoup! restaurants feature 12 rotating daily varieties of soup, including low-fat, vegetarian, gluten and dairy free options. Made-to-order salads, sandwiches and baked goods are also available.