What Does the Initial Franchise Fee Cover at Quiznos?

Operating a franchise is an opportunity for an entrepreneur to own her own business while working with a proven system. Most franchises have a list of fees and other financial obligations an entrepreneur must pay prior to opening the new business location.

Facts

Quiznos is a restaurant franchise focusing on sub sandwiches. The initial franchise fee is $25,000 and pays for the right to operate under the company's brand name and sell its products. This fee is quite common in the business but ranges widely based on the company.

Features

In addition to the initial franchise fee, entrepreneurs must pay $5,000 for a site survey, lease review and other location startup fees. Once approved, Quiznos requires a $40,000 deposits for paying the architect to design the store and ordering equipment. The total of these three items represent the amount new business owners must invest in the franchise.

Considerations

Once the franchise operation is up and running, entrepreneurs must pay 7 percent in royalties on net sales and 4 percent in royalties on net sales for marketing purposes. These payments continue in perpetuity until the restaurant closes.

References

• Quiznos, A Top Food Franchise