Cousins Subs
Cousins Subs offers made-to-order submarine sandwiches and related food products under the brand name "Cousins Subs." Known for its sub sandwiches, the franchise operates in the quick-service restaurant sector.
About Cousins Subs
Cousins Submarines, better known as Cousins Subs, is an American sub sandwich shop with nearly 100 locations as of December 2024. It was founded in 1972 by cousins Bill Specht and Jim Sheppard and is a regional chain with restaurants in Wisconsin and Indiana.
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Cousins Subs franchise FAQ
How much does it cost to open one — the total initial investment?
The total initial investment necessary to begin operation of a Cousins Subs Shop is between $45,000 to $70,000 paid directly to the franchisor or its affiliates. [p.1]
What is the initial franchise fee?
The initial franchise fee is $25,000 for the first franchise you purchase. For each additional franchise, the initial franchise fee is $17,500 [p.12, p.22]. This fee is nonrefundable upon execution of the Franchise Agreement [p.122].
What are the ongoing royalty and advertising fees?
The franchisee is obligated to contribute 2% of their gross receipts to an advertising and development fund administered by Cousins. This can be increased to 3% with 90 days' written notice. There is no specific mention of ongoing royalty fees in these excerpts, so this isn't specified in the provided FDD.
How long is the initial franchise agreement, and can I renew it?
The initial term of the franchise agreement is not specified in the excerpts. However, you have the right to renew this franchise for one additional successive term of ten years upon fulfillment of certain conditions [p.123].
Can I sell or transfer my franchise, and what does that require?
According to [p.5], a franchisor can refuse to permit the transfer of ownership of a franchise except for good cause. Good cause includes but is not limited to unspecified criteria. This means there are specific conditions under which the franchisor may or may not approve such transfers.
On what grounds can the franchisor terminate the agreement?
The franchisor can terminate the agreement if there is a failure by the franchisee to comply with any lawful provision of the franchise agreement or multi-unit development agreement and fails to cure such failure after being given written notice and a reasonable opportunity, which cannot exceed 30 days [p.5(c)].
What financial requirements — net worth and liquid capital — do I need to qualify?
This isn't specified in the excerpts. The FDD does not provide specific details on the required net worth or liquid capital amounts for qualification as a franchisee.
Do I get an exclusive or protected territory?
No exclusive or protected territory is granted under the Franchise Agreement as described. You may face competition from other Cousins Subs Shops both inside and outside your designated territory, and there are no guaranteed rights to prevent Cousins from establishing additional franchises or company-owned outlets in your area [p.39]. Additionally, any territorial protection you receive is not dependent on sales volume or market penetration, and it can be terminated if the development schedule under a Multi-Unit Development Agreement is not met [p.40].
What training and ongoing support does the franchisor provide?
The franchisor provides initial training for the franchisee or designated managers at their corporate office, a designated training facility, or virtually [p.129]. This training covers various aspects such as financial controls, food preparation, operational techniques, marketing, sanitation, and more [p.129]. Additionally, the franchisor ensures that all trainers are certified and experienced in Cousins' operations [p.33]. Ongoing support includes making further training available as necessary [p.147], though specific details on ongoing support beyond initial certification are not provided in these excerpts.
How many franchised outlets are there, and how many have closed or been terminated?
Based on the provided excerpts, there is no specific number given for current franchised outlets. However, it is mentioned that during the 2024 fiscal year, 4 franchised Shops closed and were excluded from the franchised Shops chart [p.60]. This isn't specified in the excerpts.
Does the franchisor share any financial performance or earnings information?
The franchisor, Cousins, does not make any financial performance representations except for providing actual records of an existing outlet if you are purchasing one. However, if there is a reasonable basis, Cousins may provide financial performance information about its franchised and/or franchisor-owned outlets, but this must be included in the disclosure document [p.54].
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 they designate, which might be more expensive than other options [p.3]. The franchise agreement does not specify what you are restricted to selling, but it does require maintaining an adequate inventory to meet maximum capacity and comply with all applicable laws [p.26].