If someone will give me just a little nudge, I'll pull the trigger. I think I'm going to go for it. Here's what I've sent in an application for to get the ball started. Gator Bill, you might be familiar with this one? I'm going to have someone study their UFOC for me in the next week. What do you guys think? http://www.firehousesubs.com/
Here I am all jacked up and can't sleep cause I think I've finally found what will work for me and I can't get a word out of you guys? Come on Florida folks speak up. This company started in Jax. These Subs are a party in your mouth! Anyone had one?
Never had one up here in Michigan TB but now I am ravenous after viewing the website. Alas, I'll have to go to Jimmy Johns or Subway for lunch.
I had lunch in one more than a year ago in L.A. (than's Lower Alabama) somewhere in Mobile or Baldwin County. I'll guess Bay Minette but couldn't swear to it. Place had just opened. Struck me as Subway with a large open floor space with table and chairs not the usual Subway booths or 2 man tables the size of first graders desks. Seemed to be more staff as well. I picke up a brochure off the counter and read it while wolfing down my nondescript sub. I asked the kid "on the floor" how long they'd been open, menu, etc. He went in the back and brought out the owner. We chatted for 15 minutes or so about the concept. While it was much more comfortable to sit at Firehouse than Subway, the cuisine does not foster casual diners who linger so what's the point of the better amenities? It's a fast food joint where people grab subs on the run (or a brief sitdown). As a result I questioned the vastly larger floor space (S.F./patron arrangement). It stuck me that the overhead/unit sales should be higher than Subway. You have to command a higher sales price just to be even. The food on the menu did not seem to me as being able to command a higher price for the lunch trade here in Alabama. Of course Starbucks finally made it here a couple of years ago and people here are now paying more for a cup of coffee than for their beloved Hardee's breakfast bisquit with gravy. The Owner told me that the roominess was "a key facet of the Firehouse concept" but despite what struck me as a boiler plate reguritation he really didn't answer the question. A day or two after I got back in the Birmingham area I found a new Firehouse in a shopping center and took my wife in for a sub. She doesn't like Subway and liked Firehouse less ("It's an overpriced !@#$ Subway with elbow room!"). A new shopping center that opened recently about 20 miles south of Birmingham has a Firehouse Sub so the concept must still have interest to potential operators. It may be a successful venture but it didn't strike me as a Southern eatery if you're outside neighborhoods like Atlanta's Buckhead.
To all... <t>A lot of experience here on the skybox with what I need to know. Here's the question. Franchisee has told me to make him an offer. He has one store up and running. It's profiting him 100K a year. That's his net profit. After all his taxes and bills are paid he's putting 100K in the bank a year.<br/> <br/> My guess based on what's below is he has 250K in cost to get the store up and running... (Taken from Firehouse website)<br/> <br/> What is my initial investment?<br/> On average, it’s between $140,000 – $180,000, which includes a one-time franchise fee of $20,000. Ongoing fees include royalties (6% of sales) and marketing (3% of sales).<br/> <br/> <br/> From what I understand is he has agreed to open 5 stores in this concession or agreement area, which I believe is judged to be big enough for 7 stores. From my understanding of the service agreement he would paid an additional 50K dollars, (50% of the total franchise fee for each store which is 20K each) when he started up. I come up with this based on what's below which again is taken from their website.<br/> <br/> <br/> 4. Can I own more than one unit? And how can I be assured of future locations?<br/> Yes, you may own more than a single unit. You can lock up additional locations by signing a development agreement for multiple units. For the development rights to a geographic area, a nonrefundable payment equal to 50% of the total franchise fee for each store to be opened in the area is required upon signing the multiple unit agreement. Then, the initial franchise fee for each store is reduced by half and due upon signing the franchise agreement. You will select a territory from those currently available. At that time, we will agree upon the number of stores to be opened and timetable for opening them.<br/> <br/> So my guess is he has 300K invested so far in his one store and agreement for 4 other start ups? Have I made a mistake here or am I pretty close? <br/> <br/> His 1 store has been up and running 2 years now. If this information is correct, Do you think 400K is a reasonable offer? <br/> <br/> One note about the area this franchisee has, It's a HUGE area, with lots of potential. I can count atleast 5 stores that can be developed in it.<br/> <br/> P.S. Why is he willing to sell? He's about 60 years old, he lost his wife last year. He said that knocked the wind out of his sails. He spent 4 months in the hopital with her on her death bed. For 1 year while she was sick, he wasn't at his store. This has set him back, he said he should have 3 stores running by now had this not happened. He seems to be a wonderful person. He has no family, no kids. He's wanting to do something else with the rest of his life. Like Joel, he has 25 years in the Rest. business.</t>
Thank you Jack. <t>A friend told me to take a look at it. He knew I was interested in Jersey Mikes. He's a long time Subway fan. He said it was the best Sub he's ever ate and he would never go back to Subway. So I tried it. I love it! I described it to my wife as "a party in my mouth". The wife visited it today and said, " I hate subs, but it's the best sub I've ever had". She really liked it and that speaks volumes to me. She's the type that will go to Jersey Mikes and ask for a "Sub in a tub", which is w/o the bread. My beef with Firehouse is it's not as filling as Jersey Mikes. I can hardly open my mouth wide enough to bite into a Jersey Mikes Sub. It's not that way with Firehouse. What they lack in quantity they make up for in taste IMO. My friend said that the size was a good thing because most women are turned off when a sub is as big a Jersey Mikes. Anyway, I guess we all have different taste buds. I will say this, The store does require atleast 5 working on the line during lunch. Another thing, this Sub shop has 'em lined up out the door at lunch time and every seat taken.</t>
TB just read another post where you stated some figures. If these can be verified I have an asking price in mind for you. They must be VERIFIED, however. joel
Jif, <t>Yes Jif, I'm very serious about this! Haven't slept in 3 days. Do you still need the info. you sent to my inbox, or do you have an idea what he might take. I'm off to the doctor for a 9.:15 appointment, be back shortly.</t>
Jif, Check your inbox and thanks again for your help. P.S. Yes, The wife is a go and as almost as excited as I am. She's just better at containing her emotions within herself. Me, I'm jacked up and ready to go at full speed. We've prayed about this and if it's Gods Will, then I'm ready to move forward. Plans have changed a little. If this works out, I will leave UPS immediately and as soon as we can get another store going, my wife will take over that one.
Tailback, I'm sorry I didn't read this before. Final exams and getting back here to North Carolina kept me kind of inactive for the last several weeks. Not only have I heard of Firehouse subs, they are now my favorite sub sandwich replacing Subway. Good luck. I think Joel and others here can give you much better advice as whether or not to go ahead, but I can tell you I love the product. Gator Bill
I've never had a Firehouse Sub, but if they are better than Subway then you have a winner. Do they as much promotional TV spots as Subway in the areas that they are located? Good Luck. Terry
Jif, I'm still waiting on Firehouse to send me the UFOC. Maybe I need to speed the progress up a little by aranging a meeting with an area developer and taking a trip to Winston-Salem, Greensboro area to see if that area is something I'm interested in? I'm ready to dive head first into this and it seems like it's such a slow process. Doc, No, They haven't advertised a bit in my area. Good thing is, the store closest to me stays swamped. The store owner did mention he sent out 5K coupons just recently. So I guess he does advertise a little, but there's no T.V or Radio ads going in this area. Bill, Yeah I love their product over Subway. My wife loves their Subs, and she's not a Sub eater. The local store has a great customer base. I'm quite surprised at how many women eat there. Seems like times a waisting, I have no idea what to do next? I hate to bother these folks, I guess they will move at their own pace?l
TB..Ive run into delays of this nature. Sometimes the office clerks are to blame. In my past experience, I would go right to the top. In other words, call the area director directly and talk one on one with him. By pass any office clerks!!! Nothing wrong with calling corporate and asking for the CEO even! Its your life thats on hold! Go get em my man! jif