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Below is an in-depth analysis and side-by-side comparison of McDonald's vs Atlantic City Sub Shops including start-up costs and fees, business experience requirements, training & support and financing options.
Start-Up Costs and Fees |
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Investment | $1,314,500 - $2,306,500 | $100,000 - $275,000 |
Franchise Fee | $45,000 | $15,000 |
Royalty Fee | 4% | 5% |
Advertising Fee | 4%+ | - |
Year Founded | 1955 | 1986 |
Year Franchised | 1955 | 1995 |
Term Of Agreement | 20 years | 3 years |
Term Of Agreement | 20 years | 3 years |
Renewal Fee | $45K | - |
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/No | No/No |
Start-up Costs | No/No | No/No |
Equipment | No/Yes | No/No |
Inventory | No/No | No/No |
Receivables | No/No | No/No |
Payroll | No/No | No/No |
Training & Support |
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Training | On-The-Job Training: 500 hours Classroom Training: 72 hours Additional Training: At local McDonald's restaurant | Available at headquarters, Available at franchisee's location |
Support | Purchasing Co-ops Newsletter Meetings/Conventions Toll-Free Line Grand Opening Online Support Security/Safety Procedures Field Operations Site Selection Proprietary Software | Grand opening, Internet, Field operations/evaluations |
Marketing | Co-op Advertising Ad Templates National Media Regional Advertising Social media SEO Website development Email marketing Loyalty program/app | Ad slicks |
Operations |
82% of all franchisees own more than one unit
Absentee ownership of franchise is NOT allowed. (100% of current franchisees are owner/operators) |
0% of all franchisees own more than one unit Number of employees needed to run franchised unit: 13 - 15
Absentee ownership of franchise is NOT allowed. (100% of current franchisees are owner/operators) |
Expansion Plans |
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US Expansion | Yes | Yes |
Canada Expansion | No | No |
International Expansion | Yes | No |
Brett Perlman, Scott Perlman and Santo Formica founded Atlantic City Sub Shops in 1986, opening their first store in Egg Harbor Township, New Jersey, just west of the shoreline destination. From that location, the partners began serving submarine sandwiches for customers who would eat in, take out or order delivery.
The company overnights sandwiches made in the Egg Harbor store to customers who don't have an Atlantic City Sub Shop location near them.