I pulled together some numbers of required royalty and advertising fees for sandwich franchises: Required Royalty and Advertising Fees for Sub & Sandwich Franchises Subway 12.5 % Quiznos 11 % Mr. Hero 10.5% Blimpies 10% Jersey Mike’s 10% Philly Connection 10% Togo’s Eatery 10% Zero’s Subs 10% Firehouse Subs 9% Jerry’s Subs and Pizza 9% Burger King 8.5% Charley’s Grilled Subs 8.25% Capt. Subs 8% Cousin Subs 8% Hungry Howie’s Pizza and SUbs 8% Subs Plus 8% Great Outdoors Subs 7% Lenny’s Sub Shops 7% Moe’s Italian Sandwiches 7% Nathan’s Famous 7% Pickerman’s Soup & Sandwiches 7% Port of Subs 6.5% Sub Station II 6% Baldinos Giant Jersey Subs 5% An 8% difference in the fees for a franchise with $500,000 in sales is $40,000. Many would die to have that extra $40,000 to hire a qualified manager, enabling the franchisee be more of an absetnee owner. Lower doesn’t necessarily mean better. I would want required pooling of local (maybe regional) funds for collective advertising and promotions.

Sames store sales growth during 2004 of quick service restaurant franchises are doing OK:

A look at a Curves franchise numbers does paint a rosey picture, but is it rosey enough?

Lesson: Get a lawyer to represent you or your problems will likely end up like this Quiznos franchisee.