Jreck Subs
Jreck Subs offers franchises to establish quick-serve restaurants focusing on made-to-order specialty submarine sandwiches and other food items. Known for its fresh subs and casual dining atmosphere, Jreck Subs competes in the fast-casual restaurant sector.
Jreck 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 Jreck Subs franchise ranges from $127,500 to $428,500. This includes an initial franchise fee of $18,500 and other costs such as construction or leasehold improvements, point-of-sale systems, and additional start-up expenses during the initial 3 months of operation [p.1, p.88, p.16, p.25].
What is the initial franchise fee?
The initial franchise fee is $18,500 for the first Franchised Business and $12,500 for each additional Franchised Business. This fee is nonrefundable [p.16].
What are the ongoing royalty and advertising fees?
The ongoing royalty and advertising fees are based on a percentage of the franchisee's gross sales, as specified in the franchise agreement [p.161]. These fees are recognized as revenue when there is a reasonable expectation that they will be collected [p.163].
How long is the initial franchise agreement, and can I renew it?
The duration of the initial franchise agreement and renewal options are not specified in the provided excerpts. This isn't specified in the excerpts.
Can I sell or transfer my franchise, and what does that require?
You may not sell or otherwise assign or transfer the franchise licenses and rights without the franchisor's prior written consent [p.101]. The franchisor will not unreasonably withhold consent, but they can impose conditions, including ensuring the Total Sales Price is not excessive to jeopardize the economic viability of the franchise business and its assignee/buyer [p.103].
On what grounds can the franchisor terminate the agreement?
The franchisor can terminate the agreement on any grounds available by law [p.202].
What financial requirements — net worth and liquid capital — do I need to qualify?
This isn't specified in the excerpts. The FDD focuses on maintaining adequate reserves and working capital but does not provide specific details about net worth or liquid capital requirements for qualification as a franchisee.
Do I get an exclusive or protected territory?
No, you do not receive an exclusive territory [p.29]. You may face competition from other franchisees, outlets owned by the company, or competitive brands controlled by them in your area.
What training and ongoing support does the franchisor provide?
The franchisor provides an initial training program overseen by their Vice President, Jake Renzi, and Director of Operations, Emma Slate. This training covers integrated subjects and can take place at a designated Franchised Business location or FSF's corporate office [p.27]. Additionally, the franchisor may charge for further training after the business opens and reserves the right to provide continuing advisory assistance with associated fees [p.14]. Ongoing royalty revenue is tied to the operational activity of franchise locations [p.163, p.176].
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 may provide financial performance information if there is a reasonable basis for it [p.39]. However, they do not make representations about future financial performance and prohibit their employees from making such claims either orally or in writing [p.39]. If you are purchasing an existing outlet, the franchisor may provide actual records of that specific outlet's performance [p.39].
What am I restricted to selling, and where must I buy supplies?
You are not permitted to solicit business outside of your Territory without written consent from the franchisor. You must make sales only to customers, not retailers. Regarding supply purchases, you may have to buy or lease items from the franchisor or a limited group of suppliers designated by them, which might be more expensive than other options [p.4]. Additionally, you are required to purchase certain products and equipment from the franchisor or their approved suppliers as specified in the System [p.14] and must adhere to the terms and conditions outlined on the Price List provided by the franchisor [p.35].