We hear some of the same good questions on a regular basis. Here are some of the ones you may have been wondering about:
1. How soon until I open/how long does the process take?
From first inquiry to opening of the restaurant, the process takes about six to 12 months (depending on a number of factors, including site availability).
2. What is my initial investment?
The initial franchise fee is $20,000 for a single unit franchise. The estimated initial investment required for a single Restaurant ranges from $221,100 to $464,700.
3. What are the royalty and advertising fees?
Royalty is 6 percent of sales; advertising is 3 percent of sales.
4. Can I own more than one unit? And how can I be assured of future locations?
Yes, you may own more than a single unit. You can lock up additional locations by signing a development agreement for multiple units. For the development rights to a geographic area, a nonrefundable payment equal to 50 percent of the total franchise fee for each store to be opened in the area is required upon signing the multiple unit development agreement. Then, the initial franchise fee for each store is reduced by half and due upon signing the franchise agreement. You will select a territory from those currently available. At that time, we will agree upon the number of stores to be opened and timetable for opening them.
5. How many employees does it take to operate a unit?
You can expect to hire 15 to 20 full-time and part-time employees.
6. What’s involved in my approval, how much training will I receive and where will I be trained?
Your initial application is submitted to the Area Representative, who will disclose qualified applicants with a Franchise Disclosure Document (FDD). The Area Representative has an initial dialogue with you, and if they wish to consider you for their territory, you will attend an exploration orientation called Day of Discovery at our corporate office in Jacksonville, Fla. The Day of Discovery consists of three elements: A unique general session with our President and Founder, Robin Sorensen; a presentation on the FDD conducted by Greg Delks, director of franchise development; and one-on-one interviews with all four members of the company's executive team. The members are Founders Robin Sorensen and Chris Sorensen, Partner and Chief Financial Officer Stephen Joost, and Chief Operating Officer Don Fox.
Subsequent to approval by the three principals and COO, an application and an initial deposit are submitted, and a background investigation is conducted. The potential franchisee then works 100 hours in the Area Representative’s Training Restaurant, rotating through every job position. Based upon your performance during the 100 Hour Program, the Area Representative will offer their recommendation for or against approval (the final decision rests with the three principals and COO). Following approval, the franchise agreement is executed. It is then your responsibility to locate a site for your restaurant, and submit it to FOA for approval. Once the site is approved, you will submit the lease for FOA’s approval. After the lease is signed, you will begin a six week training program at the Area Representative’s Training Restaurant.
Finally, you will attend a one-week certification program conducted at our training facility in Jacksonville. Our experienced training staff, led by our Director of Training, Susan Andrews, will ensure that you have developed the necessary skills to successfully operate your new restaurant. Franchise candidates who successfully complete this final program are officially certified and--if they meet all other conditions--may open a Firehouse Subs® restaurant.
Area Representative – The most leverage currently possible in the Firehouse system. In addition to owning and operating at least one restaurant, you are also empowered to assist in the recruitment of other franchisees – and share in the initial franchise fee and the royalties. Only a select few who meet stringent qualifications will be approved as Area Representatives.
7. What support will I receive going forward?
You will receive marketing and advertising support (emphasizing a neighborhood-marketing methodology) through your Area Representative, our advertising agency (Zimmerman), and our corporate marketing staff. Led by your Area Representative, you and the other franchisees in the local market will work collaboratively to execute marketing programs at the market level (national programs may also be required by FOA from time to time). In addition, you’ll benefit from ongoing training, research and development of new products, regular dialogues with your AR, operations support and periodic business counseling.
8. What are the requirements for an operating partner?
We only allow operating partners who are solely devoted to their Firehouse Subs business. The operating partner must also have a minimum of 50% ownership. The operating partner cannot be actively engaged in other business interests that potentially detract from the optimum performance of their Firehouse Subs restaurant(s).
9. Do I have to live in the same market where I operate my restaurants?
Yes, in order to effectively manage your business, you must reside within a distance we determine to be satisfactory.