Millers
Millers Famous Sandwiches offers roast beef sandwiches and other food items in franchised restaurants, known for slow-roasted beef and take-out/delivery services. In the quick-service restaurant industry.
Millers franchise FAQ
How much does it cost to open one — the total initial investment?
The total initial investment necessary to begin operation of a single Miller's Famous Sandwiches business ranges between $335,500 and $690,500. This includes an Initial Franchise Fee of $30,000 [p.10], with an additional amount ranging from $40,000 to $45,000 that must be paid to the franchisor or its affiliates [p.1].
What is the initial franchise fee?
The initial franchise fee for a single Miller's Famous Sandwiches Business is $30,000 [p.10]. This fee is fully earned by the company once paid and is non-refundable [p.10, p.77, p.179].
What are the ongoing royalty and advertising fees?
The ongoing royalty fee is 5% of Gross Sales. For new franchisees eligible for the Franchise Incentive Program, the rate starts at 3% for the first year and increases to 4% in the second year before rising to the full 5% after the second year. Additionally, franchisees must spend an average of 1.5% of their Gross Sales on local advertising each month as part of the Local Advertising Requirement, which can be increased up to 3% with written notice. [p.77, p.104, p.31]
How long is the initial franchise agreement, and can I renew it?
The initial term of the franchise agreement is ten years [p.62]. You may enter into a maximum of two successor franchise agreements if you meet the conditions specified, with each successor term being five years [p.62].
Can I sell or transfer my franchise, and what does that require?
Yes, you can sell or transfer your franchise, but it requires the franchisor's approval. The process involves paying a transfer fee, which is 25% of the current initial franchise fee if the transferee is an existing franchisee, or 50% if transferring to another third party approved by the franchisor [p.86]. This isn't specified in the excerpts.
On what grounds can the franchisor terminate the agreement?
The franchisor can terminate the agreement for good cause, which includes the franchisee's failure to comply with any lawful provision of the franchise agreement and failing to cure such failure after receiving written notice and a reasonable opportunity (no more than 30 days) to do so [p.5]. Additionally, the franchisor may terminate the agreement on any grounds available by law [p.154].
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?
Based on the excerpts provided, you do not receive an exclusive territory [p.38, p.39]. You are granted a protected territory ('Protected Area') which means that during the term of the Franchise Agreement, the company will not establish or franchise others to establish another Miller's Famous Sandwiches Business within your designated Protected Area [p.38, p.61]. However, this protection is subject to certain conditions and does not guarantee exclusivity [p.39, p.108].
What training and ongoing support does the franchisor provide?
The franchisor provides initial training at no cost for up to two people (you or your Managing Owner and Designated Manager) attending the same program, held at their corporate locations or a designated site. Additional trainees require payment of $500 per person per day [p.35]. Ongoing support includes additional training for newly hired personnel, refresher courses, and other assistance as needed or requested, with potential fees involved [p.30]. The franchisor may also require system-wide refresher or additional training from time to time, and can mandate remedial training if operational deficiencies are identified during an inspection [p.37].
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 and does not authorize its employees or representatives to do so [p.51]. However, if you are purchasing an existing outlet, they may provide actual records of that outlet's performance [p.51]. This isn't specified in the excerpts for new franchises.
What am I restricted to selling, and where must I buy supplies?
You are restricted to selling only those services and products authorized by the franchisor, which may vary based on operating season and geographic location [p.44]. You must purchase or lease items from the franchisor or a limited group of suppliers designated by them, as these items might be more expensive than alternatives you could buy on your own [p.3]. This isn't specified in the excerpts for the exact sources of supplies, but it is clear that you need to use approved suppliers provided by the franchisor [p.26].