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How Much Is an Earl of Sandwich Franchise? (Detailed Franchise Costs)

Published on November 29, 2021 by Franchise Chatter Leave a Comment
in Franchise Costs, Sandwich Franchise, Sub Sandwich Franchise

Earl of Sandwich Photo by Prayitno



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Earl of Sandwich Franchise Costs: Estimated Initial Investment (Item 7, 2021 FDD)

  • Earl of Sandwich Restaurants may be developed as in-line, end cap, or free-standing locations. Since the franchisor has limited experience in developing free-standing Earl of Sandwich Restaurants, the figures below reflect the estimated initial investment for an Earl of Sandwich Restaurant located at an in-line or end cap location.
  • If you plan to develop an Earl of Sandwich Restaurant in a free-standing location, the real estate, building, and site improvement costs are likely to be significantly higher than what is included in this Item 7.

Traditional Restaurant

1.  Initial Franchise Fee:  $15,000

2.  Application Fee:  $10,000

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3.  Grand Opening Required Spending:  $5,000

  • At least 60 days prior to the opening of a Franchised Restaurant, you must submit a Grand Opening Required Spending Plan to Earl of Sandwich outlining your proposal for grand opening advertising of the Franchised Restaurant. You must obtain Earl of Sandwich’s consent to the Grand Opening Plan before you begin to implement it.
  • You must, during the period beginning 30 days before the scheduled opening of the Franchised Restaurant and continuing until 60 days after the Franchised Restaurant first opens for business, spend at least $5,000 to conduct grand opening advertising under the Grand Opening Plan.
  • Within 10 days after the end of this period, you must submit proof of your grand opening advertising expenditures to Earl of Sandwich.

4.  Leasehold Costs and Building and Site Improvements:  $160,000 to $342,000

  • The franchisor expects that you will lease the location for the Franchised Restaurant, which will typically be in shopping centers and will vary in size from 1,200 to 2,000 square feet for an in-line or end cap location.
  • You may be required to pay the first and last months’ lease payment upon signing your lease agreement. Lease agreements may include the following expenses:  taxes, insurance, maintenance, fixed rent (with escalations), percentage rent, and other charges related to the operation of the Franchised Restaurant.
  • The franchisor cannot estimate the costs to purchase real estate for a Franchised Restaurant if you elect to purchase the site since these costs vary widely by geographic area.
  • The franchisor estimates that building and site improvement costs, including permits and municipality fees, will range from $100 to $200 per square foot or more depending upon the condition of the property and local regulatory requirements.

5.  Furnishings, Fixtures, and Equipment:  $75,000 to $105,000

  • You must purchase certain items of furniture, fixtures, equipment, and smallwares as required by the Franchise Agreement and the Manual. You may be able to lease from or finance through a third party a portion of these purchases; however, you should expect to make a down payment ranging between 40% and 50% of the cost.

6.  Signage:  $3,000 to $20,000

  • The type of signage installed is governed by local ordinances regarding height and size restrictions. The typical signage package includes a minimum of one large exterior facial sign, one exterior banner sign, digital menu boards, marked awnings, and an interior and directional signage package.

7.  Point of Sale System:  $15,000 to $25,000


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8.  Technology:  $1,000 to $4,000

  • These costs include charges to set up your technology systems including the online ordering program, gift and loyalty card programs, and music system. This estimate does not include on site store POS configuration.

9.  Graphic Items:  $3,000 to $7,000

  • This estimate includes the interior and exterior art package, which may include wall treatments, vinyl graphics, prints, and pictures as specified in the Manual.

10.  Professional Fees:  $1,000 to $4,000

  • These figures represent the estimated costs of engaging an attorney or other business professionals to review this disclosure document and the accompanying agreements, assist you in organizing a business entity, and help you obtain required licenses and permits.

11.  Initial Manager Training:  $4,000 to $6,000

  • These costs include transportation, lodging, food, and other incidental expenses for you and your employees during training.

12.  Pre-Opening Costs:  $15,000 to $40,000

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  • These costs include utility deposits, installation of telephones, data transfer lines, business licenses, uniforms, office and cleaning supplies, and other prepaid expenses. It also includes a range of $15,000 to $25,000 for the initial inventory of food and paper.
  • If you elect to obtain an alcoholic beverage license to serve wine and beer at your Franchised Restaurant, which is not required, you can expect to pay between $10,000 and $200,000. The cost of these licenses varies greatly from jurisdiction to jurisdiction depending on the licensing authority involved and the local alcoholic beverage license resale market, if any.
  • Some states limit the available number of alcoholic beverage licenses. In such markets, you are likely to be required to pay grossly inflated prices on the secondary market to obtain a license and you may decide not to offer alcoholic beverages at your Franchised Restaurant.

13.  Additional Funds – 3 Months:  $10,000 to $15,000

  • These figures are an estimate of the additional funds that you may require for operating expenses during the initial three months of business. They include payroll, taxes, insurance, food, paper, supplies, utilities, music service fees, gift and loyalty program fees, online ordering fees, technology maintenance and support fees, licenses and permits, bank charges, and repair and maintenance expenses.
  • They do not include advertising or royalty fee payments made to Earl of Sandwich.
  • These figures are estimates, and Earl of Sandwich cannot guarantee that you will not have additional expenses starting the business.

14.  Total Estimated Initial Investment:  $317,000 to $598,000

Non-Traditional Restaurant

  • These figures reflect the estimated initial investment for a Non-Traditional Restaurant. These estimates are based upon the franchisor’s and its franchisees’ experiences in developing Non-Traditional Restaurants.
  • The estimated initial investment for a Non-Traditional Restaurant will vary, depending on the type of venue, size, location, number of seats, anticipated volume, operational conditions, and configuration of the Facility.

1.  Initial Franchise Fee:  $15,000

2.  Application Fee:  $10,000

3.  Grand Opening Required Spending:  $2,000

4.  Leasehold Costs and Building and Site Improvements:  $160,000 to $400,000

5.  Furnishings, Fixtures, and Equipment:  $75,000 to $105,000

6.  Signage:  $3,000 to $20,000

7.  Point of Sale System:  $15,000 to $25,000

8.  Technology:  $1,000 to $4,000

9.  Graphic Items:  $3,000 to $9,000

10.  Professional Fees:  $1,000 to $4,000

11.  Initial Manager Training:  $4,000 to $6,000

12.  Pre-Opening Costs:  $15,000 to $40,000

13.  Additional Funds – 3 Months:  $10,000 to $15,000

14.  Total Estimated Initial Investment:  $314,000 to $655,000


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