REGIONAL DEVELOPER
Port of Subs regional developers help establish and operate restaurants under the Port of Subs brand, offering subs and other quick-serve food items. Known for their sub sandwiches, the franchise operates in the quick-service restaurant sector.
REGIONAL DEVELOPER franchise FAQ
How much does it cost to open one — the total initial investment?
The total initial investment necessary to begin operation of a Port of Subs regional developer business ranges from $176,000 to $671,200. This includes $125,000 to $500,000 that must be paid to the franchisor or its affiliates [p.1].
What is the initial franchise fee?
The initial franchise fee varies depending on the RD Territory's population. For example, if a territory has a residential population of 650,000 (based on 2020 U.S. Census Bureau figures), the initial franchise fee would be $143,750 ($125,000 plus 150,000 x $.125) as specified in [p.80]. This fee is fully earned and non-refundable.
What are the ongoing royalty and advertising fees?
This isn't specified in the excerpts. The provided FDD excerpts discuss Support Services Compensation, regional developer fees, and other types of revenue but do not detail the specific amounts or terms for ongoing royalty and advertising fees.
How long is the initial franchise agreement, and can I renew it?
This isn't specified in the excerpts.
Can I sell or transfer my franchise, and what does that require?
According to the FDD, you can transfer your franchise, but it requires good cause as determined by the franchisor [p.5]. This includes provisions for initial or renewal franchise fees, regional developer fees, sales-based royalties, training fees, and transfer fees when a franchise is sold to a third party [p.63].
On what grounds can the franchisor terminate the agreement?
The franchisor can terminate the agreement if there is a default by the franchisee as specified in the agreement, and the franchisee fails to cure such failure within a reasonable time frame, typically no more than 30 days [p.155]. This isn't specified in the excerpts for grounds initiated by the franchisor directly.
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 territory. The territorial protection is limited, and you may face competition from other franchisees or outlets controlled by the franchisor [p.38].
What training and ongoing support does the franchisor provide?
The franchisor provides comprehensive initial and ongoing training and support. Initial training includes franchise sales discussions, virtual and in-store training for the first restaurant, and pre-opening support lasting up to ten days. Ongoing support involves regional developer field support training, continued franchise sales training sessions, and Train-the-Trainer instruction to prepare you for supporting franchisees. This is detailed on pages [p.32-33].
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 can provide actual records of an existing outlet if purchased, but generally does not make representations about the future financial performance of regional developers or company-owned/ franchised businesses. Financial performance information may be shared under specific conditions as outlined in Item 19 and other parts of the FDD [p.46].
What am I restricted to selling, and where must I buy supplies?
This isn't specified in the excerpts. The provided FDD excerpts do not mention any restrictions on what you can sell or specific sources for buying supplies beyond potential future requirements for certain technology systems and CRM platforms.