Mr. Sub is one of Canada’s most recognized and beloved sandwich franchises. Founded in 1968 in Toronto, Mr. Sub has grown from a small sandwich shop into a large franchise with locations across the country and abroad. The brand’s commitment to providing fresh, quality sandwiches, combined with its focus on customer satisfaction, has made it a strong contender in the competitive fast food industry. In this article, we will explore the various aspects of the Mr. Sub franchise, including its brand introduction, franchise cost, conditions, process, and profit potential.
Mr. Sub Brand Introduction
Mr. Sub is a Canadian fast food chain specializing in submarine sandwiches, commonly known as subs. It was founded by two friends, Jack Levinson and Earl Linzon, who wanted to bring fresh and affordable sandwiches to the people of Toronto.
Their first shop was a hit, and from there, Mr. Sub quickly expanded into a franchise model.
The company’s menu is diverse, offering a variety of subs, wraps, salads, and sides. What sets Mr. Sub apart is its emphasis on fresh ingredients and customizable sandwiches, allowing customers to choose from a range of breads, meats, cheeses, vegetables, and sauces. This commitment to quality has helped the brand build a loyal customer base.
With over 300 locations in Canada and some international outlets, Mr. Sub is a well-established name in the fast food industry. It continues to grow, making it an attractive franchise option for entrepreneurs looking to invest in a trusted brand.
see also: Kettle Franchise
Mr. Sub Franchise Cost
Starting a Mr. Sub franchise requires an investment that covers several key expenses. The initial franchise fee is CAD 15,000 to CAD 30,000, depending on the location and market size. This fee gives the franchisee the right to use the Mr. Sub brand, access to its systems, training, and ongoing support.
In addition to the franchise fee, there are other startup costs, including:
Building and Leasehold Improvements: CAD 150,000 to CAD 300,000 (depending on the size of the location).
Equipment and Furniture: CAD 70,000 to CAD 100,000.
Initial Inventory: CAD 10,000 to CAD 20,000.
Signage and Marketing: CAD 10,000 to CAD 15,000.
Overall, the total investment to open a Mr. Sub franchise typically ranges from CAD 250,000 to CAD 400,000. This includes everything needed to get the business up and running, from securing the location to outfitting the store.
Mr. Sub Franchise Conditions
Before you can open a Mr. Sub franchise, there are certain conditions and qualifications you must meet. These are designed to ensure that franchisees have the skills and resources needed to operate a successful business.
Financial Qualifications:
You must have a minimum net worth of CAD 500,000.
You should have liquid assets of at least CAD 150,000 to cover the initial investment and operational expenses.
Experience:
While previous experience in the restaurant industry is not required, it is beneficial. Mr. Sub looks for franchisees who have business management experience and a passion for customer service.
Commitment to the Brand:
As a franchisee, you are expected to fully commit to the Mr. Sub brand and follow its operational guidelines. This includes using approved suppliers, adhering to quality standards, and participating in national marketing campaigns.
Training:
New franchisees must complete a mandatory training program. This program covers all aspects of running a Mr. Sub franchise, from daily operations to marketing and financial management.
Location Approval:
Franchisees are responsible for finding a suitable location for their Mr. Sub restaurant. The location must be approved by the corporate team to ensure it meets the brand’s standards for visibility, accessibility, and customer traffic.
Mr. Sub Franchise Process
The process of becoming a Mr. Sub franchisee is straightforward but requires careful planning and preparation. Here is a step-by-step guide to the franchise process:
Initial Inquiry:
Prospective franchisees begin by submitting an inquiry form on the Mr. Sub website or contacting the franchise development team directly.
This initial step allows you to express your interest and receive more information about the franchise opportunity.
Franchise Application:
After the inquiry, you will be asked to complete a franchise application.
This application includes detailed questions about your financial situation, business experience, and reasons for wanting to open a Mr. Sub franchise.
Interview and Evaluation:
Once your application is reviewed, you will be invited to an interview with the Mr. Sub franchise development team. This interview is designed to assess your qualifications and determine if you are a good fit for the brand.
Review of the Franchise Disclosure Document (FDD):
If you pass the interview, you will be given a copy of the Franchise Disclosure Document (FDD). This legal document outlines the terms and conditions of the franchise agreement, including fees, obligations, and the rights of both parties. You are encouraged to review this document carefully with a legal or financial advisor.
Signing the Franchise Agreement:
After reviewing the FDD and deciding to move forward, you will sign the franchise agreement. This legally binds you to the terms of the Mr. Sub franchise and allows you to begin the process of opening your restaurant.
Location Selection and Lease Negotiation:
The next step is finding a suitable location for your Mr. Sub restaurant. The corporate team will assist you in evaluating potential sites, negotiating a lease, and preparing the location for opening.
Training:
Before your store opens, you will undergo training at one of Mr. Sub’s training centers. This training typically lasts several weeks and covers all aspects of running the business, including food preparation, customer service, and financial management.
Grand Opening:
Once the location is ready and you have completed your training, it’s time for the grand opening. Mr. Sub provides marketing support to help promote the opening and attract customers to your new restaurant.
Mr. Sub Franchise Profit
Like any business, the profitability of a Mr. Sub franchise depends on several factors, including location, operational efficiency, and market demand. On average, a Mr. Sub franchise generates CAD 300,000 to CAD 600,000 in annual revenue.
However, this can vary widely based on the store’s location and customer traffic.
Operating expenses, including rent, food costs, and employee wages, typically account for 60-70% of the revenue, leaving a profit margin of around 15-20%. This means that a well-run Mr. Sub franchise can generate an annual profit of CAD 45,000 to CAD 120,000.
It’s important to note that it may take time to reach full profitability. The first few years of operation are often focused on building a customer base and fine-tuning operations. Franchisees should plan for an initial break-even period of 6 to 18 months, depending on the market and location.
Conclusion
The Mr. Sub franchise offers an excellent opportunity for entrepreneurs looking to invest in the fast food industry. With its strong brand recognition, proven business model, and comprehensive support system, Mr. Sub provides franchisees with the tools and resources needed to succeed. While the initial investment can be significant, the potential for profitability and long-term growth makes it an attractive option for those with the financial means and commitment to building a successful business.
Related topics:
- Boston Pizza Franchise Costs, Profit & Requirements For 2024
- Chagee Franchise Costs, Profit & Requirements For 2024
- Dos Bros Franchise Costs, Profit & Requirements For 2024