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Below is an in-depth analysis and side-by-side comparison of Tubby's Sub Shops vs Groucho's Deli 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 | $82,548 - $380,768 |
Franchise Fee | $17,500 - $20,000 | $18,000 - $28,000 |
Royalty Fee | 4%-6% | 5% |
Advertising Fee | 4% | - |
Year Founded | 1968 | 1941 |
Year Franchised | 1978 | 2001 |
Term Of Agreement | 10 years | 10 years |
Term Of Agreement | 10 years | 10 years |
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/No |
Start-up Costs | No/Yes | No/No |
Equipment | No/Yes | No/No |
Inventory | No/Yes | No/No |
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, Security/safety procedures, Field operations/evaluations, Purchasing cooperatives |
Marketing | National Media Social media | Co-op advertising, Regional advertising |
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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20% of all franchisees own more than one unit Number of employees needed to run franchised unit: 13 Absentee ownership of franchise is allowed. (100% of current franchisees are owner/operators) |
Expansion Plans |
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US Expansion | Yes | Yes |
Canada Expansion | No | No |
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.
Harold "Groucho" Miller came to Columbia, S.C. in 1941 with a handful of original recipes for potato salad, coleslaw, and various salad and sandwich dressings, most of which were thought up during his childhood in a Philadelphia orphanage. These humble beginnings along with the idea that, "quality is the most important ingredient in a sandwich," have led Groucho's to legendary restaurant status for 80 years.