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Below is an in-depth analysis and side-by-side comparison of Baker Bros. American Deli 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 | $430,500 - $656,000 | N/A |
Franchise Fee | $25,000 | $8,000 |
Royalty Fee | 4% | $500/mo |
Advertising Fee | - | - |
Year Founded | 1998 | - |
Year Franchised | 2000 | - |
Term Of Agreement | 10 years | 5 years |
Term Of Agreement | 10 years | 5 years |
Renewal Fee | $5K | - |
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/Yes | -/- |
Payroll | No/Yes | -/- |
Training & Support |
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Training | - | - |
Support | Meetings, Grand opening, Security/safety procedures, Field operations/evaluations, Purchasing cooperatives | - |
Marketing | Ad slicks, Regional advertising | - |
Operations |
International franchisees required to buy multiple units/master licenses Number of employees needed to run franchised unit: 15 - 18
Absentee ownership of franchise is allowed. | - |
Expansion Plans |
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US Expansion | - | - |
Canada Expansion | No | - |
International Expansion | No | - |
The Baker Bros believe that they have one of the most franchisee-friendly programs in their industry. Baker Bros is franchised through an Area Development Agreement that generally requires a 2 to 5 store minimum for individual franchisees. The Area Development Agreement covers an exact geographical area, franchise terms and conditions, number of units to be opened under the agreement and other details of the franchise program. Baker Bros offers an extensive Franchise Support Program. Tom and Ken are always available to assist you and to answer any questions that you might have. In addition, one of our Franchise Advisors will come to your store periodically to provide personal assistance from Baker Bros. Whatever you might need, there will always be a person at Baker Bros who can help you.
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!