Blimpie
Blimpie offers quick casual deli sandwiches, salads, and other food items in franchised restaurants. Known for fresh, customizable subs, it operates in the fast-casual dining sector.
About Blimpie
Blimpie International, Inc. is an American submarine sandwich chain based in Scottsdale, Arizona. It was founded in Hoboken, New Jersey, in 1964, by three friends, and has since endured three ownership changes.
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Blimpie franchise FAQ
How much does it cost to open one — the total initial investment?
The total initial fees to open a Blimpie restaurant range from $20,520 to $40,900 for a non-traditional location and from $29,520 to $53,900 for a traditional location. These amounts include the Initial Franchise Fee, grand opening fee, lease review fee (if any), and items purchased from Neptune Equipment or third-party vendor [p.32].
What is the initial franchise fee?
The initial franchise fee has been changed to Eleven Thousand Nine Hundred Dollars ($11,900) for non-traditional, co-brand locations. This change is effective and cited in [p.382] and [p.386].
What are the ongoing royalty and advertising fees?
The ongoing fees include a continuing advertising fee of four percent (4%) of your Gross Sales, which is paid at the same time as the Royalty Fee. These fees are deposited into segregated advertising accounts administered by Kahala Franchising and used for advertising, marketing, and similar activities to benefit all restaurants operating under the Blimpie System [p.178, p.247, p.315].
How long is the initial franchise agreement, and can I renew it?
This isn't specified in the excerpts. The FDD excerpts provided do not include information about the length of the initial franchise agreement or details on renewal terms beyond mentioning a Renewal Franchise Fee of 50% of the current initial fee when you renew the Agreement [p.319, p.181].
Can I sell or transfer my franchise, and what does that require?
You can sell or transfer your franchise, but the franchisor may refuse to permit such transfers except for good cause. Good cause includes situations where you fail to show that the potential transferee can perform the obligations under the franchise agreement. [p.511, p.102, p.336, p.199, p.267]
On what grounds can the franchisor terminate the agreement?
The franchisor may terminate the agreement on any grounds available by law [p.107]. Additionally, the franchisor can change its business model without your consent, which might require additional investments or harm your franchise business [p.3]. However, under Virginia Retail Franchising Act, it is unlawful for a franchisor to cancel a franchise without reasonable cause [p.526, p.115], and any termination grounds not constituting 'reasonable cause' may not be enforceable.
What financial requirements — net worth and liquid capital — do I need to qualify?
This isn't specified in the excerpts.
Do I get an exclusive or protected territory?
No, you do not receive an exclusive or protected territory. According to the FDD excerpts, [p.107] and [p.65], you may face competition from other franchisees, company-owned restaurants, or other channels of distribution controlled by the franchisor.
What training and ongoing support does the franchisor provide?
The franchisor provides a comprehensive Training Program consisting of New Owner Training (40 hours) and In-Store Training (60 hours), totaling 100 hours. This program is conducted either online or in person at their discretion, with in-person training typically held at locations such as Scottsdale, Arizona. The program includes classroom instruction using manuals, videos, and tests, followed by on-the-job training. Additionally, the franchisor reserves the right to require franchisees and managers to attend additional training if they are not operating the business according to their systems standards [p.59, p.310].
How many franchised outlets are there, and how many have closed or been terminated?
As of November 30, 2024, there were 101 franchised Blimpie outlets (97 in the United States and 3 internationally). Additionally, 8 franchise agreements had been terminated, canceled, not renewed, or otherwise ceased to operate during the year ending November 30, 2024 [p.8, p.89].
Does the franchisor share any financial performance or earnings information?
The franchisor can provide actual records of existing outlets if requested, but they are not authorized to make representations about future financial performance. Any financial performance information provided must have a reasonable basis and be included in the disclosure document [p.81]. This isn't specified in the excerpts for all types of financial performance information sharing beyond existing outlet records.
What am I restricted to selling, and where must I buy supplies?
You may have to buy or lease certain items from the franchisor or a limited group of suppliers designated by them, which might be more expensive than other options [p.3]. However, you are responsible for ensuring that your activities comply with all applicable laws in the states where your franchise locations are located, including any requirements related to goods and supplies [p.507, p.469-466].