Togo’s is a renowned sandwich chain that has been serving up fresh, made-to-order sandwiches since 1971. With its emphasis on quality ingredients, generous portions, and a variety of menu options, Togo’s has built a loyal customer base and established itself as a leader in the fast-casual dining sector. For aspiring entrepreneurs, owning a Togo’s franchise can be a lucrative and fulfilling venture. This article will delve into the details of how Togo’s franchise works, from the initial application process to the benefits and support provided to franchisees.
A Brief History of Togo’s
Before diving into the specifics of the franchise model, it’s essential to understand the history and ethos of Togo’s. The first Togo’s location opened in San Jose, California, in 1971. Founder Tom Neumann had a vision of creating a sandwich shop that offered high-quality, fresh ingredients and substantial portions. The concept quickly gained popularity, leading to the opening of additional locations and the eventual expansion into a franchise model.
Today, Togo’s operates over 200 locations across the United States, primarily in the Western states. The brand has maintained its commitment to quality and consistency, ensuring that every sandwich is made to order with the freshest ingredients.
see also: Why Are TOGO’S Sandwiches So Popular?
The Togo’s Franchise Model
Togo’s offers a comprehensive franchise model designed to support franchisees from the initial application through the ongoing operation of their restaurant. Here are the key components of how Togo’s franchise works:
1. Initial Investment and Franchise Fees
Starting a Togo’s franchise requires an initial investment that covers various expenses, including the Togo’s franchise cost, equipment, inventory, and working capital. The total investment required can range from approximately $240,500 to $539,800, depending on the location, size, and condition of the restaurant.
2. Togo’s Franchise cost
The initial Togo’s franchise cost for a Togo’s restaurant is $30,000. This fee grants the franchisee the right to use the Togo’s brand, trademarks, and operating systems.
3. Ongoing Fees
In addition to the initial Togo’s franchise cost, franchisees are required to pay ongoing fees, including:
Royalty Fee: Franchisees pay a royalty fee of 6% of their gross sales.
This fee covers the continued use of the Togo’s brand and support services.
Advertising Fee: Franchisees contribute 2% of their gross sales to the national advertising fund. This fund is used to promote the Togo’s brand and drive traffic to the restaurants.
4. Site Selection and Build-Out
Choosing the right location is crucial to the success of any restaurant. Togo’s provides extensive support to franchisees in selecting and securing a suitable site for their restaurant. This process includes:
Market Analysis: Togo’s team conducts a thorough market analysis to identify high-potential areas for new locations.
Site Evaluation: Once a potential site is identified, Togo’s assists with site evaluation, lease negotiation, and securing the necessary permits and approvals.
Restaurant Design and Build-Out: Togo’s provides detailed guidelines for the design and build-out of the restaurant to ensure consistency across all locations. This includes layout plans, equipment specifications, and branding guidelines.
5. Training and Support
One of the key benefits of owning a Togo’s franchise is the extensive training and support provided to franchisees. This support is designed to help franchisees successfully operate their restaurant and achieve their business goals.
6. Initial Training
Togo’s offers a comprehensive initial training program for new franchisees and their management teams. This training covers all aspects of operating a Togo’s restaurant, including:
Operations: Franchisees learn the day-to-day operations of the restaurant, including food preparation, customer service, and inventory management.
Marketing: Togo’s provides training on local store marketing strategies to help franchisees attract and retain customers.
Financial Management: Franchisees receive training on financial management, including budgeting, cash flow management, and profitability analysis.
7. Ongoing Support
In addition to initial training, Togo’s provides ongoing support to franchisees to ensure their continued success. This support includes:
Field Support: Togo’s field support team visits franchise locations regularly to provide guidance and assistance with operations, marketing, and business development.
Marketing Support: Togo’s national marketing team develops advertising campaigns and promotional materials to drive traffic to the restaurants. Franchisees also receive support for local marketing initiatives.
Supply Chain Management: Togo’s has established relationships with suppliers to ensure that franchisees receive high-quality ingredients at competitive prices. The supply chain team assists with ordering, inventory management, and vendor relationships.
8. Operational Excellence
Togo’s is committed to maintaining high standards of operational excellence across all its locations. Franchisees are expected to adhere to these standards to ensure a consistent customer experience. Key components of operational excellence include:
9. Quality Control
Togo’s places a strong emphasis on quality control to ensure that every sandwich meets the brand’s high standards. This includes regular inspections, mystery shopper programs, and customer feedback mechanisms.
10. Training and Development
Ongoing training and development are essential to maintaining operational excellence. Togo’s offers continuous training opportunities for franchisees and their staff, including workshops, webinars, and online training modules.
11. Performance Metrics
Togo’s provides franchisees with access to performance metrics and benchmarks to help them monitor and improve their restaurant’s performance. These metrics include sales data, customer satisfaction scores, and operational efficiency indicators.
Steps to Becoming a Togo’s Franchisee
For those interested in owning a Togo’s franchise, the process involves several steps:
Initial Inquiry: Prospective franchisees begin by submitting an inquiry form on the Togo’s website. This form collects basic information about the applicant and their interest in the franchise.
Franchise Application: After the initial inquiry, applicants complete a detailed franchise application, providing information about their background, financial status, and business experience.
Initial Interview: Togo’s franchise development team conducts an initial interview with the applicant to discuss their qualifications, goals, and expectations.
Franchise Disclosure Document (FDD): Qualified applicants receive the FDD, which contains detailed information about the franchise opportunity, including financial performance representations, fees, and obligations.
Due Diligence: Applicants conduct their due diligence, reviewing the FDD, speaking with current franchisees, and assessing the potential investment.
Discovery Day: Prospective franchisees attend a Discovery Day at Togo’s corporate headquarters, where they meet the leadership team, tour the facilities, and gain a deeper understanding of the brand and its operations.
Franchise Agreement: After completing due diligence and attending Discovery Day, qualified applicants sign the franchise agreement and pay the initial Togo’s franchise cost.
Training and Site Selection: New franchisees begin the training program and work with Togo’s team to select and secure a suitable location for their restaurant.
Restaurant Build-Out and Opening: The restaurant build-out process begins, followed by a grand opening event to introduce the new Togo’s location to the community.
Conclusion
Owning a Togo’s franchise offers numerous benefits, including the opportunity to be part of a well-established brand with a loyal customer base. Franchisees receive comprehensive training and support, access to quality ingredients, and a proven business model designed to drive success. By following the franchise system and maintaining a commitment to quality and customer service, Togo’s franchisees can achieve their business goals and enjoy the rewards of owning a successful restaurant. Togo’s continues to grow and evolve, offering new opportunities for entrepreneurs who are passionate about great food and exceptional service. For those looking to enter the fast-casual dining industry, a Togo’s franchise represents a compelling and rewarding investment.