Ikes Love And Sandwiches
Ike's Love and Sandwiches offers quick-serve restaurants featuring meat and vegetarian sandwiches and beverages. Known for its customizable menu options, the brand supports multi-unit operators with development fees and a total investment range of $141,300 to $614,000.
Ikes Love And Sandwiches franchise FAQ
How much does it cost to open one — the total initial investment?
The total initial investment necessary to begin operation of an Ike's Love & Sandwiches franchise ranges from $141,300 to $614,000. This includes $80,000 to $104,500 that must be paid to the franchisor or affiliates. [p.1]
What is the initial franchise fee?
The initial franchise fee is $80,000. This fee is non-refundable and must be paid upon signing the Franchise Agreement [p.10, p.83].
What are the ongoing royalty and advertising fees?
The franchisee pays a royalty fee of up to six percent of gross sales per month, due within seven days of the prior week end date [p.66]. Additionally, there is an ongoing requirement to spend at least one percent of gross sales each month on local advertising, with monthly updates and reports required [p.97]. There is also a continuing weekly royalty fee equal to eight percent of Gross Sales, due by electronic funds transfer on or before Monday of each week [p.83].
How long is the initial franchise agreement, and can I renew it?
This isn't specified in the excerpts. The FDD does not provide information about the duration of the initial franchise agreement or the renewal process beyond mentioning that a successor franchise agreement may be required under certain conditions [p.82].
Can I sell or transfer my franchise, and what does that require?
According to the FDD, a franchisor can refuse to permit the transfer of ownership of a franchise except for good cause [p.193]. Good cause is not defined in these excerpts but may include specific reasons determined by the franchisor. This means you cannot freely sell or transfer your franchise without the franchisor's approval.
On what grounds can the franchisor terminate the agreement?
According to [p.193], a franchisor can terminate the agreement only for good cause, which includes the failure of the franchisee to comply with any lawful provision of the franchise agreement and curing such failure after being given written notice and a reasonable opportunity not exceeding 30 days. This is subject to the restrictions imposed by the Virginia Retail Franchising Act as mentioned in [p.205].
What financial requirements — net worth and liquid capital — do I need to qualify?
This isn't specified in the excerpts. The provided FDD does not detail specific net worth or liquid capital requirements for franchisees to qualify. However, it does mention that if the franchisor's most recent unaudited financial statements show a net worth of less than $100,000, the franchisee has the right to request an escrow arrangement [p.194].
Do I get an exclusive or protected territory?
No, you do not receive an exclusive territory. You may face competition from other franchisees, outlets owned by the company, and other competitive brands [p.35, p.37]. However, the company can reserve the right to adjust trade areas if it believes doing so will serve your best interest or resolve conflicts [p.37].
What training and ongoing support does the franchisor provide?
The franchisor provides mandatory HQ Initial Training for three trainees at no additional cost to the franchisee, which includes a two-week program conducted at their headquarters or another designated location [p.31]. Additionally, annual or periodic refresher training programs and annual meetings are required after the opening of the restaurant [p.32], with potential fees up to $1,000 per person for these trainings [p.33].
How many franchised outlets are there, and how many have closed or been terminated?
This isn't specified in the excerpts.
Does the franchisor share any financial performance or earnings information?
The franchisor does not make any financial performance representations other than the gross sales information provided by existing outlets, and this is only shared upon a reasonable request for written substantiation [p.51]. Additionally, the franchisor is prohibited from providing any financial information to prospective franchisees unless it is already disclosed in the FDD [p.107, p.49] and does not authorize its employees or representatives to make such representations either orally or in writing [p.51].
What am I restricted to selling, and where must I buy supplies?
You must sell or offer for sale only the menu items and products approved in writing by the franchisor [p.42]. You may not deviate from their standards and specifications without first obtaining written consent [p.42]. As for 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].