What’s New in the Business or in the Franchise Model?
We are now a Sports bar concept. This is the concept that we are franchising. We have implemented new systems to help manage the business more efficiently so the owners can spend more time running their business than doing all the admin work. RASI – Payroll, Accounting, Inventory, Sales, finance, cash management etc.
We partnered with a new marketing company that is helping us drive of YOY Same Store Sales
We are partnered with PopMenu, a new marketing, website AI company that allows us to be more interactive with our guests.
We have enhanced (continual process) our training programs.
Where do you See Opportunities or Challenges for the Franchise/Business Moving Forward?
I think our growth is the biggest opportunity as well as our biggest challenge.
What is your Goal for the Business Moving Forward?
Our goal is to grow 3-6 stores each year for the next 2 years and then 10+ after that.
Talk to us About Training and Support, How Do You Deliver?
- A comprehensive operations/field training program
- Staff selection training — training on how to attract, select and hire the right applicants
- Ongoing support from experienced operations, marketing and real estate professionals
- Marketing materials such as radio and TV commercials, online and social advertising, newspaper ads, direct mail, coupon books, promotional posters and signage.
Your most difficult moment at the Franchise Business?
The most challenging event in the Franchise Business was and still is changing the perception of our concept from a straight sub shop, like Subway, to a Sports bar concept. In new markets, it will be easier, but in our current markets, Submarine House was a sub shop for a little over 30 years before we opened our first Sports Bar.
Define your Franchise Model:
A. Training and Support Model?
We provide an initial training program of up to 4-weeks that covers material aspects for the operation of your Restaurant. The topics covered are listed in the chart below. This training is conducted at our headquarters in Dayton, Ohio, or another location we designate. You must designate a manager for the Restaurant and he or she must satisfactorily complete the initial training approximately 1 month before the opening of your Restaurant. Up to 3 managers or assistants, in the aggregate and of your choosing, may also attend at your option.
We expect that your attendees will advance through the training program at different rates depending on a variety of factors, including background and experience. The time frames provided in the chart are an estimate of the time it will take to complete training. We do not charge for initial training. The exact amount of initial training will be determined by us on a case by case basis. You must pay for all travel costs and living expenses for yourself and any of your attendees. You are responsible for training your own employees and other management personnel who do not received initial training. This initial training is in addition to the on-site opening assistance we provide to you.
Your Restaurant must at all times be under the day-to-day supervision of a designated manager who has satisfactorily completed our training program. If you replace your designated manager, your new designated manager must attend our training and complete the program to our satisfaction. After a replacement of the designated manager, he or she has 60 days to complete initial training. You are not charged any fee to have a new designated manager attend our training program, unless your manager changes are excessive or caused by poor hiring practices, as determined by us at our sole discretion. You must pay all travel costs and living expenses for a new designated manager.
TRAINING PROGRAM
|
SUBJEC T |
HOURS OF TRAINING |
LOCATION |
| Overview | 8 | Our headquarters in Dayton, Ohio |
| Marketing | 8 | Our headquarters in Dayton, Ohio |
| Grand Opening | 40 | Our headquarters in Dayton, Ohio and your franchise location |
| Register Training | 16 | Our headquarters in Dayton, Ohio and your franchise location |
| Counter Training | 8 | Our headquarters in Dayton, Ohio and your franchise location |
| Food/Alcohol Handling | 16 | Our headquarters in Dayton, Ohio and your franchise location |
| Store Setup | 8 | Our headquarters in Dayton, Ohio and your franchise location |
| Store Cleanliness | 8 | Our headquarters in Dayton, Ohio |
| Inventory and Ordering | 8 | Our headquarters in Dayton, Ohio |
| Daily Opening Duties | 8 | Our headquarters in Dayton, Ohio |
| Nightly Closing Duties | 8 | Our headquarters in Dayton, Ohio |
| Interviewing/Hiring | 8 | Our headquarters in Dayton, Ohio |
| Scheduling | 8 | Our headquarters in Dayton, Ohio |
| Operations Manual | 8 | Our headquarters in Dayton, Ohio |
B. What is the Fee Structure?
There are two constant The royalty fees (5.5%) of gross revenues and the national advertising fund (2.5%) of gross revenues.
C. Territory Definition?
This will be defined on a case by case Many factors come in to play here like population density.
D. Day in the life of a Franchisee?
A franchise owner’s day will likely look similar to any business owner’s day — some days could be focused on meetings, training and staffing, while others are spent focusing on marketing and sales building activities — but the actual day-to-day life of the franchisee will depend heavily on the specific goals of the individual owner.
For example, if a hands-off franchisee is looking to open multiple locations and hire full management teams to handle day-to-day operations, the time commitment can be significantly less than if a hands- on owner plans to proactively run a single location.
What does Your Franchisee Do in the Business Every Day?
Typically, the franchisee oversees the day to day operations. Mondays, the franchisee is getting payroll, inventory, sales, accounts payable sent into our accounting system. Placing orders if needed, making sure the schedule is correct for the day, putting out any fires from the weekend. The rest of the week, the franchisee is engaging with customers, employees, keeping up on all HR, Marketing, schedules for the following week, forecasting sales and budgets, keeping a close eye on labor costs and COGs, etc.
Who is the Ideal Franchise Candidate?
- Strong business acumen
- Previous business or restaurant experience and/or franchise experience
- Strong work ethic
- Robust people skills
- Deep roots in their local community
- Net worth of at least $750,000 with $250,000 – $300,000 liquid
Success Stories and Failures with Franchisees?
Submarine House has not had any failures in its 50 year history. All of its Franchisees are successful in our system.
What Goals Do You Have for the Franchise Model in the Future?
Our goals for the model are to keep moving forward, change or pivot when needed, but we want Submarine House to be a leader in the casual dining restaurant segment, specializing in the best local & regional craft beer with famous Philly style cheesesteaks and oven-toasted deli subs with a distinctive taproom flair. Submarine House represents friendly service in a relaxed setting where everyone is welcome and appreciated. Everyone is family. We are passionate about taking care of one another and our guests. We love what we do and share it with others. This is life at Submarine House. It encompasses the company’s culture and philosophies and is supported daily by the following our core values: Commitment to Quality, Dedication to Local Communities, Family Matters, and Genuine Hospitality.