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Below is an in-depth analysis and side-by-side comparison of Subway vs Frullati Cafe & Bakery 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 | $145,900 - $446,000 |
Franchise Fee | $15,000 | $30,000 |
Royalty Fee | 8% | 6% |
Advertising Fee | 4.5% | - |
Year Founded | 1965 | 1985 |
Year Franchised | 1974 | 1994 |
Term Of Agreement | 20 years | 10 years |
Term Of Agreement | 20 years | 10 years |
Renewal Fee | none | 75% of then-current 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 | Yes/Yes | No/No |
Start-up Costs | No/Yes | No/No |
Equipment | Yes/Yes | No/Yes |
Inventory | No/Yes | No/No |
Receivables | No/No | No/No |
Payroll | No/No | No/No |
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 | - |
Support | Newsletter Meetings/Conventions Toll-Free Line Grand Opening Online Support Security/Safety Procedures Field Operations Site Selection Proprietary Software Franchisee Intranet Platform | Newsletter, Meetings, Toll-free phone line, Grand opening, Internet, Security/safety procedures, Field operations/evaluations, Purchasing cooperatives |
Marketing | Co-op Advertising Ad Templates National Media Regional Advertising Social media SEO Website development Email marketing Loyalty program/app | Building sales takes effort on many different levels - from running your business with monitored food costs, to strong operations, to local store marketing, to most importantly ensuring that you give every customer a reason to return. The Frullati Cafe Marketing Team will assist you by creating national marketing initiatives and advertising that are key to building sales. Increasing sales takes diligent effort in all areas of your business. Co-op advertising, Ad slicks, 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; 35% of all franchisees own more than one unit Number of employees needed to run franchised unit: 6 Absentee ownership of franchise is allowed. (98% of current franchisees are owner/operators) |
Expansion Plans |
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US Expansion | Yes | - |
Canada Expansion | No | No |
International Expansion | Yes | Yes |
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.