Togos
TOGO'S offers specialty sandwiches and related food items in a franchise model, known for quick-service dining; part of the fast-casual restaurant industry.
About Togos
TOGO'S Eateries, LLC is an American chain of fast casual sandwich restaurants owned by Southfield Mezzanine Capital who purchased the company in March 2019. TOGO'S is headquartered in Campbell, California.
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Togos 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 TOGO'S Restaurant is from $314,500 to $584,500. This amount includes the initial franchise fee and other startup costs but excludes additional marketing expenditures which may be required up to $15,000 in the first year [p.21, p.31].
What is the initial franchise fee?
The initial franchise fee (IFF) is $30,000 for each new location. For existing TOGO'S franchisees, the IFF to develop a new restaurant is $15,000 [p.19, p.11]. This isn't specified in the excerpts for other scenarios or discounts beyond these conditions.
What are the ongoing royalty and advertising fees?
Franchisees pay a continuing royalty fee based on up to 5% of gross sales on a weekly basis. Additionally, they contribute typically 3% of gross sales to the marketing start-up fee and also pay a minimum continuing advertising fee based on gross sales. These fees are in exchange for the license of Togo's intellectual property and for providing advertising and sales promotion services. [p.145]
How long is the initial franchise agreement, and can I renew it?
The initial franchise agreement's duration isn't specified in these excerpts, but a franchisee has the option to renew their franchise for one additional ten-year term upon expiration of the initial term [p.75].
Can I sell or transfer my franchise, and what does that require?
This isn't specified in the excerpts.
On what grounds can the franchisor terminate the agreement?
The franchisor can terminate the agreement if you breach or default under the Master Agreement or any other agreement with them and do not cure the default within the applicable cure period, if any [p.40]. Additionally, termination can occur if you commit a felony, crime of moral turpitude, fraud, or fail to remain qualified under their current guidelines for multi-restaurant development [p.40].
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 a protected or exclusive territory under the terms of the Franchise Agreement [p.71]. This isn't specified in the excerpts for Multi-Unit Agreements either, as they only provide opportunities to develop special distribution opportunities within your designated Multi-Unit Area, but do not guarantee exclusivity [p.39, p.73].
What training and ongoing support does the franchisor provide?
The franchisor provides initial training, which is not required but believed important for success [p.37], and may offer additional formal and informal training sessions from time to time [p.37]. However, they are not obligated to provide any of these services that they would normally provide to a new franchisee [p.75]. The franchisor also uses franchise brokers who can assist in selling franchises but advises potential franchisees to do their own investigation [p.171].
How many franchised outlets are there, and how many have closed or been terminated?
As of December 31, 2022, there were 154 franchised TOGO'S Restaurants open in the U.S. [p.8]. Additionally, 12 franchised TOGO'S Restaurants (including 1 non-traditional, 1 Combo, and 10 traditional) closed during the 2022 fiscal year, but none of these closed after being open for less than 12 months. [p.54]
Does the franchisor share any financial performance or earnings information?
The franchisor is permitted to provide financial performance information if there is a reasonable basis for it and if such information is included in the disclosure document [p.53]. However, except as disclosed in Item 19, no oral or written information concerning actual or potential sales, income, or profits of a restaurant will be furnished by the franchisor to prospective franchisees [p.58].
What am I restricted to selling, and where must I buy supplies?
You are restricted to offering and selling only the goods and services that the franchisor has approved and designated for sale at your Restaurant [p.44]. You may have to buy or lease items from the franchisor or a limited group of suppliers they designate, which might be more expensive than other options [p.3].