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Below is an in-depth analysis and side-by-side comparison of Papa's Pizza To-Go vs The Submarine Station including start-up costs and fees, business experience requirements, training & support and financing options.
Start-Up Costs and Fees |
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Investment | $138,950 - $386,800 | N/A |
Franchise Fee | $9,500 | $8,000 |
Royalty Fee | 5% | $500/mo |
Advertising Fee | - | - |
Year Founded | 1987 | - |
Year Franchised | 1990 | - |
Term Of Agreement | 10 years | 5 years |
Term Of Agreement | 10 years | 5 years |
Renewal Fee | 20% of franchise 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 | -/- |
Start-up Costs | No/Yes | -/- |
Equipment | No/Yes | -/- |
Inventory | No/Yes | -/- |
Receivables | No/No | -/- |
Payroll | No/No | -/- |
Training & Support |
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Training | - | - |
Support | Newsletter, Meetings, Grand opening, Security/safety procedures, Field operations/evaluations | - |
Marketing | Co-op advertising, Ad slicks, Regional advertising | - |
Operations |
15% of all franchisees own more than one unit Number of employees needed to run franchised unit: 15 Absentee ownership of franchise is allowed. (77% of current franchisees are owner/operators) | - |
Expansion Plans |
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US Expansion | Yes | - |
Canada Expansion | No | - |
International Expansion | No | - |
As a company grows there are three main methods of growth to choose from: sole proprietorship, joint venture, or franchising. The franchise system is an exciting model because of the common shared interest in the founding company (the Franchisor) and the small business owner (the Franchisee) that both want the system to work. The problem with most franchising models is that a Franchisee is under such stringent restrictions from the Franchisor. Understandably, the Franchisor has a huge interest in protecting the brand. This interest in protecting the brand has inherent drawbacks that now become the Franchisee's issues. A few of these drawbacks are: real estate long-term leasing or purchasing, expensive proprietary equipment, forced product price points, etc. Who pays for this in the end? Well, the Franchisee does. Who looks out for the Franchisee? The Submarine Station will!