McDonald's vs Togo's Eateries, LLC Franchise Comparison

Below is an in-depth analysis and side-by-side comparison of McDonald's vs Togo's Eateries, LLC including start-up costs and fees, business experience requirements, training & support and financing options.

Start-Up Costs and Fees
 
McDonald's Franchise
Togo's Eateries, LLC Franchise
Investment $1,314,500 - $2,306,500$240,500 - $545,700
Franchise Fee $45,000$30,000
Royalty Fee 4%5%
Advertising Fee 4%+3%
Year Founded 19551971
Year Franchised 19551977
Term Of Agreement 20 years10 years, renewable
Term Of Agreement 20 years10 years, renewable
Renewal Fee $45K-


Business Experience Requirements
 
McDonald's Franchise
Togo's Eateries, LLC Franchise
Experience
  • Industry experience
  • General business experience
  • Marketing skills
    		• We're looking for franchisees with an entrepreneurial spirit and the willingness to work hard. Franchisees invest in us because they know how great our sandwiches are and how much our loyal guests love them. To invest in our great organization, a single restaurant development requires $150,000 in liquid assets and a net worth of $300,000. Three or more restaurant developments require $450,000 in liquid assets and a net worth of $900,000.

    Financing Options
     
    McDonald's Franchise
    Togo's Eateries, LLC Franchise
      In-House/3rd PartyIn-House/3rd Party
    Franchise Fees No/No-/No
    Start-up Costs No/No-/Yes
    Equipment No/Yes-/Yes
    Inventory No/No-/Yes
    Receivables No/No-/Yes
    Payroll No/No-/Yes

    Training & Support
     
    McDonald's Franchise
    Togo's Eateries, LLC Franchise
    Training On-The-Job Training: 500 hours Classroom Training: 72 hours Additional Training: At local McDonald's restaurant As Togo's sandwich franchise owner, you and/or your designated manager will be enrolled in an extensive training program that covers all aspects of restaurant operations - running and marketing the business. The training includes eight hours of food safety certification; a week of classroom training at our headquarters in San Jose, which covers business operations, bookkeeping, marketing, and systems for overseeing and managing your business; three weeks of on-the-job operations training at a Togo's restaurant, learning to make sandwiches, manage inventory, and use the point of sale system. On-The-Job Training: 120 hours Classroom Training: 24 hours
    Support Purchasing Co-ops Newsletter Meetings/Conventions Toll-Free Line Grand Opening Online Support Security/Safety Procedures Field Operations Site Selection Proprietary Software Our ongoing support sets Togo's apart. We group our restaurants into three districts: Northern California, Southern California, and New and Emerging Markets. Each group is overseen by a Vice President of Franchise Operations, who manages a team of Franchise Business Consultants. The Franchise Business Consultants help franchisees track key performance indicators, solve operational challenges, and boost performance. We also provide support with: 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 Co-op Advertising Ad Templates National Media Regional Advertising Social media SEO Website development Email marketing Loyalty program/app Co-op Advertising Ad Templates Regional Advertising Social media SEO Website development Email marketing Loyalty program/app
    Operations 82% of all franchisees own more than one unit

    Absentee ownership of franchise is NOT allowed. (100% of current franchisees are owner/operators)

    		Number of Employees Required to Run: 14 - 25

    Expansion Plans
     
    McDonald's Franchise
    Togo's Eateries, LLC Franchise
    US Expansion YesYes
    Canada Expansion No-
    International Expansion Yes-

    Company Overviews

    About McDonald's

    Ray Kroc, a milkshake mixer salesman, ventured to California in 1954 to visit McDonald's hamburger stand, where he heard they were running eight mixers at once. Kroc was impressed by how rapidly customers were served and, seeing an opportunity to sell many more milkshake machines, encouraged brothers Dick and Mac McDonald to open a chain of their restaurants. Kroc became their business partner and opened the first McDonald's in Des Plaines, Illinois in 1955.
    McDonald's brand is in 122 countries around the world. Thirty thousand locations serve 51 million customers each day. More than 70 percent of McDonald's restaurants around the world are owned and operated by independent local business people. Most standalone McDonald's restaurants offer both counter and drive-through service, with indoor and sometimes outdoor seating. The Drive-Thru, Auto-Mac, or McDrive as it is known in many countries, often has separate stations for placing, paying for, and picking up orders, though the former two steps are frequently combined. In some countries "McDrive" locations near highways offer no counter service or seating. In contrast, locations in high-density city neighborhoods often omit drive-through service.


    "Top   ""  "Entrepreneur

      "franchiserankingscom"                                                                                                                         
    #7 on Franchise Rankings.com                                                                                                                                                            
    #3 in Canada's top franchises.
    #3 in Franchise 500 for 2020
    #11 in Franchise 500 for 2021










    About Togo's Eateries, LLC

    Togo's has been a true West Coast original since 1971. Our friendly, non-corporate personality and our demand for fresh, high-quality food has been bringing guests to our sandwich franchises for more than four decades.
    Our sandwich franchise began when a young college student with a big appetite and a little money bought a small sandwich shack in San Jose where he started making sandwiches the way he liked them -- big, made to order and stuffed with fresh ingredients.


    Seeking new franchise units in the following regions/states:
    Arizona, California, Colorado, Idaho, Nevada, Oregon, Utah and Washington
    Veteran Incentives  50% off franchise fee

    "Entrepreneur
    #342 in Franchise 500 for 2020.