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Below is an in-depth analysis and side-by-side comparison of D'Angelo Grilled Sandwiches 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 | $391,000 - $556,000 | N/A |
Franchise Fee | $20,000 | $8,000 |
Royalty Fee | 6% | $500/mo |
Advertising Fee | - | - |
Year Founded | 1967 | - |
Year Franchised | 1988 | - |
Term Of Agreement | 20 years | 5 years |
Term Of Agreement | 20 years | 5 years |
Renewal Fee | $10K | - |
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 | -/- |
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, Toll-free phone line, Grand opening, Internet, Security/safety procedures, Field operations/evaluations, Purchasing cooperatives | - |
Marketing | Co-op advertising, Ad slicks, Regional advertising | - |
Operations |
Franchisees required to buy multiple units/master licenses; 77% of all franchisees own more than one unit Number of employees needed to run franchised unit: 12 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 | Yes | - |
On March 1, 1967, "Ma Riva's Sub Shop" in Dedham, Massachusetts opened its doors. The philosophy was simple: put the best quality meats, cheese, and ingredients in the freshest breads, and serve it in a quick, friendly way. Later the name was changed to Angelo and then added the letter D for delicious. And D'Angelo would serve as a pioneer in lunch offerings, making it possible for guests on the go to enjoy delicious, healthy options like fresh salads and Syrian pockets, made to order. In August of 1997, Papa Gino's Holdings Corporation, the parent company of Papa Gino's, acquired D'Angelo, creating an unparalleled combination in the quick service restaurant industry. Today, the D'Angelo menu includes over 44 sandwiches as well as a variety of soups and fresh-made salads. Together, D'Angelo and Papa Gino's share a commitment to provide high-quality products, attentive service, clean, convenient, attractive restaurants, and a premium value experience for every guest. With more than 200 D'Angelo Grilled Sandwiches restaurants and nearly 170 Papa Gino's restaurants, they serve more than 50 million guests every year, enjoying tremendous loyalty from both employees and guests.
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!