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Below is an in-depth analysis and side-by-side comparison of Subway vs Z Pizza including start-up costs and fees, business experience requirements, training & support and financing options.
Start-Up Costs and Fees |
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Investment | $139,550 - $342,400 | $249,000 - $359,000 |
Franchise Fee | $15,000 | $30,000 |
Royalty Fee | 8% | 6% |
Advertising Fee | 4.5% | 3% |
Year Founded | 1965 | 1986 |
Year Franchised | 1974 | 1999 |
Term Of Agreement | 20 years | 10 years |
Term Of Agreement | 20 years | 10 years |
Renewal Fee | none | - |
Business Experience Requirements |
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Experience | ||
Financing Options |
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In-House/3rd Party | In-House/3rd Party | |
Franchise Fees | Yes/Yes | No/Yes |
Start-up Costs | No/Yes | No/Yes |
Equipment | Yes/Yes | No/Yes |
Inventory | No/Yes | No/Yes |
Receivables | No/No | No/Yes |
Payroll | No/No | No/Yes |
Training & Support |
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Training | On-The-Job Training: 33 hours Classroom Training: 62 hours Additional Training: Training available in Australia, China, Germany, India, Montreal, Canada & Miami | Additional training available as required |
Support | Newsletter Meetings/Conventions Toll-Free Line Grand Opening Online Support Security/Safety Procedures Field Operations Site Selection Proprietary Software Franchisee Intranet Platform | The zpizza support system is extremely detailed and begins from the moment your franchise agreement is signed, throughout your development phases, and through your store opening. Training is provided to the operational owners and managers for your store. The zpizza Training Program is a four week program comprehensive of all operational details involved in your business. zpizza provides a team to serve from pre-opening to opening. - Use of brand name, trademarks, recipes, operational systems and methods, and décor - Facility planning on site location and architectural design - Specifications for fixtures, equipment, and leasehold improvements - Assistance in site selection and lease negotiation - Corporate training for Owner/Operator and Director of Operations/General Managers - Kitchen/Back of the House Workflow design - Ongoing support from members of the Training and Operations Team - Ongoing updates for increasing profitability - Products with high industry demand - Favorable national contracts with suppliers of goods and services - Operating manuals, policies, procedures, and business management systems - Annual franchisee meetings - Access to zpizza's proprietary, Internet-based system that acts as a repository for all above-mentioned support materials, manuals, graphics and brand communications. |
Marketing | Co-op Advertising Ad Templates National Media Regional Advertising Social media SEO Website development Email marketing Loyalty program/app | Co-op advertising, Ad slicks, National media, Regional advertising |
Operations |
65% of all franchisees own more than one unit Number of employees needed to run franchised unit: 8-12 Absentee ownership of franchise is allowed. (100% of current franchisees are owner/operators)
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Franchisees required to buy multiple units/master licenses; 100% of all franchisees own more than one unit Number of employees needed to run franchised unit: 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 |
In 1965, 17-year-old Fred DeLuca and family companion Peter Buck opened Pete's Super Submarines in Bridgeport, Connecticut. With a credit from Buck for just $1,000, DeLuca trusted the modest sandwich shop would procure enough to put him through school. In the wake of battling through the initial couple of years, the organizers changed the organization's name to Subway and started diversifying in 1974. Offering a new, solid contrasting option to fast-food eateries, Subway has establishments all through the United States and in a few nations, with areas in customary and nontraditional locales alike.
In contrast with different rivals in the fast food industry, where franchisees need to pay millions, - for example, McDonald's ($1-2 million) and KFC ($1.3-2.5 million), investors in Subway need to pay just a portion of that.
The total investment is an estimated $150,050 - $328,700 in the United States and $102,000 to $234,000 in Canada.
Z Pizza was founded in 1986 and began franchising in 1999. The Newport Beach, California-based company has more than 90 units in the United States.Z Pizza is a rapidly growing chain of gourmet, health conscious pizza stores operating in high-profile lifestyle centers and metropolitan retail centers. The store footprint is approximately 1,100 to 1,500 square feet. Z pizza serves four day parts which include, lunch, afternoon chill, dinner and catering. The wide menu serves pizza, pizza by the slice, salads and sandwiches.