Tubby's Sub Shops vs Newk's Franchise Comparison

Below is an in-depth analysis and side-by-side comparison of Tubby's Sub Shops vs Newk's including start-up costs and fees, business experience requirements, training & support and financing options.

Start-Up Costs and Fees
 
Tubby's Sub Shops Franchise
Newk's Franchise
Investment $112,900 - $293,500$971,100 - $1,207,350
Franchise Fee $17,500 - $20,000$40,000
Royalty Fee 4%-6%5%
Advertising Fee 4%1.5%
Year Founded 19682004
Year Franchised 19782004
Term Of Agreement 10 years-
Term Of Agreement 10 years-
Renewal Fee -none


Business Experience Requirements
 
Tubby's Sub Shops Franchise
Newk's Franchise
Experience -Newk's is looking for experienced franchise owners with a track record of success opening and running multiple unit foodservice operations. Qualified candidates will have a minimum of 3 years experience, and be financially and operationally capable of developing at least 3 -5 Newk's Express Cafe locations (we recommend that each franchise candidate/group have at least $600,000 in liquid assets, meaning cash, stocks, bonds or other easily liquid assets).

Financing Options
 
Tubby's Sub Shops Franchise
Newk's Franchise
  In-House/3rd PartyIn-House/3rd Party
Franchise Fees No/Yes-/Yes
Start-up Costs No/Yes-/Yes
Equipment No/Yes-/Yes
Inventory No/Yes-/Yes
Receivables No/No-/Yes
Payroll No/No-/Yes

Training & Support
 
Tubby's Sub Shops Franchise
Newk's Franchise
Training On-The-Job Training: 92 hours Classroom Training: 28 hours Additional Training: Company store On-The-Job Training: 276 hours Classroom Training: 74 hours
Support Newsletter Meetings/Conventions Toll-Free Line Grand Opening Field Operations Site Selection 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 Regional Advertising Social media SEO 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)

Number of Employees Required to Run: 50

Expansion Plans
 
Tubby's Sub Shops Franchise
Newk's Franchise
US Expansion Yes-
Canada Expansion No-
International Expansion No-

Company Overviews

About Tubby's Sub Shops

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.

About Newk's

Experienced restaurateurs know that the only constant in our industry is change. Newk's has a flexible menu designed for timeless appeal with three primary components - sandwiches, salads and pizzas. These were chosen to provide maximum adaptability to changing costs, tastes and regional preferences.
Newk's is also a flexible concept adaptable to many venues.
* Pad or commercial sites
* Strip and lifestyle centers
* Urban/downtown locations
* Conversions of existing restaurants
* Enclosed mall/food court locations
* University or office locations
* Airport, train station or other non-traditional locations

The Newk's Express Cafe franchise program is designed for growth; it's designed to provide you and your organization with the guidance, the training and the tools to implement our innovative concept, and to refine and grow for many years to come. The Newk's Express Cafe strategy is to provide each customer with many ways to enjoy Newk's, and help franchise owners maximize the benefit of each customer relationship.

The Newk's Concept offers:
* Dine-in
* Takeout
* On-site catering
* Retail sales
* Corporate sales programs

Get Growing - with Newk's Express Cafe
If you are looking for a solid business opportunity designed for growth, consider the advantages of the Newk's Express Cafe franchise opportunity:
* A concept validated by industry trends
* Limited menu with unlimited appeal
* A streamlined, efficient operational system
* Flexible menu, adaptable to change in trends and tastes
* Flexible store design/location options
* Long-term, multi-unit franchise focus
* An experienced, respected management team
* Strong training and marketing programs

* The ongoing support of a dedicated franchise company

The total investment necessary to begin operation of a Newk's Restaurant franchise is $971,100 to $1,207,350. This includes a $40,000 initial franchise fee that must be paid to the franchisor. The franchisor may offer to enter into an area development agreement to establish and operate a certain number of Newk's Restaurants at specific locations pursuant to individual franchise agreements. The area development fee, which will vary depending upon the number of franchised restaurants to be developed, will be equal to the total of $40,000 for the first Newk's Restaurant plus $20,000 for each additional Newk's Restaurant to be developed. The area development fee will be applied to the initial franchise fees for each applicable Newk's Restaurant.