Togo's is a restaurant chain specializing in specialty sandwiches and related food and beverage items. The franchise operates locations offering a variety of sandwiches made with fresh ingredients in a fast-casual setting.
Key Insights
- Togo's began as a small sandwich shop with a vision for fresh, quality ingredients, evolving into a recognized brand known for its bold flavors and variety of deli-style sandwiches, wraps, and salads, catering to a broad customer base seeking convenient and satisfying meal options.
- The franchise operates on a model that emphasizes fresh preparation and customer service, with a menu designed for both in-store dining and off-premise consumption through take-out and delivery services, ensuring accessibility and convenience for patrons seeking their favorite sandwiches.
- The business operates within the fast-casual dining sector, a segment characterized by its focus on higher-quality ingredients and a more sophisticated dining experience than traditional fast food, with a growing demand for customizable and freshly prepared meals.
Franchise Fee and Costs to Open
Exploring the financial picture of Togo's gives insight into both the upfront commitment and the potential revenue opportunity. According to FDD Item 7, opening this franchise typically involves an investment in the range of $451,625 - $653,000, along with a franchise fee of $15,000 - $30,000.
Financial Performance and Revenue
Yearly gross sales of $708,453 and estimated earnings of $85,015 - $106,268 show the potential financial performance of this franchise. These figures are crucial for prospective franchisees as they help to project revenue and profitability. They offer insight into the business's ability to generate income and can be used to compare its performance against other investment opportunities. The Franchise Payback Period of 6.3-8.3 provides an estimation of the time it might take for an owner to recover their initial investment. This metric is a key consideration for anyone evaluating the financial viability of a franchise, as it relates directly to the speed at which the business can become profitable. A shorter payback period can indicate a faster return on capital, which is a significant factor in making an informed decision about a franchise investment.
Training and Resources
Togo's provides new franchisees with comprehensive training. This initial program, lasting two weeks, takes place at Togo's corporate headquarters. Togo's offers ongoing support and resources to aid in operational success. The franchise also provides marketing materials and operational manuals. Togo's recommends leveraging these resources for a strong business foundation.
Legal Considerations
Legal considerations for a Togo's franchisee are outlined in the Franchise Disclosure Document (FDD) and the Franchise Agreement. Note that this franchise discloses lawsuits and/or bankruptcy information in its FDD, which may impact your evaluation. Subscribe now to access more details and be sure to consult a qualified attorney before proceeding.
Challenges and Risks
A franchisee entering the sandwich and deli sector might encounter considerations such as a saturated local market, requiring differentiation to attract customers. Managing daily operations, from food preparation to staffing, presents a layer of complexity. Dependence on a consistent supply of fresh ingredients also means navigating potential disruptions within the specific supply chains for these items.
Franchise Datasheet
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