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Cousins Subs Franchise ProfileRestaurant Franchises > Quick-Service Restaurants |
Initial Investment and Financial Requirements for Cousins Subs Franchise
To open a Cousins Subs franchise, you should prepare for an initial investment ranging from $444,700 to $954,500. This includes a franchise fee of $25,000. Additionally, you will need a net worth between $500,000 and $1,000,000. Ongoing fees include a royalty fee of 6% and a marketing fee of 2%, making it essential to assess your financial readiness before proceeding.
Revenue Potential and Performance Metrics
The average annual revenue per Cousins Subs unit is approximately $877,666, with a median annual revenue of $1,029,332. Franchisees can expect a breakeven time of about 12 months and an investment payback period of around 21 months. These figures highlight the potential profitability of owning a Cousins Subs franchise, but individual results may vary based on location and management.
Operational Insights and Expenses
Operating a Cousins Subs franchise involves various expenses, with total operating expenses averaging around $415,069 annually. Key costs include wages ($208,067), occupancy ($44,614), and franchise fees ($36,431). Understanding these expenses is crucial for effective budgeting and ensuring the financial health of your franchise.
Franchise Growth and Unit Performance
Over the past three years, Cousins Subs has seen fluctuations in its number of franchised units, with 65 in 2020, 53 in 2021, and 48 in 2022. In contrast, corporate units have increased from 31 in 2020 to 44 in 2022. This trend indicates a strategic focus on corporate growth while managing franchise expansion, which could impact potential franchisee opportunities.
Cousins Subs Franchise Financial Requirements
Below, you’ll find an overview of the initial investment needed to launch the business, along with the ongoing fees required by the franchisor to maintain operations over time.
The minimum total assets (minus liabilities) you must possess.
Net Worth Required:
The estimated period to recoup your total investment.
Investment Payback:
The initial fee paid to join the franchise system.
Franchise Fee:
Ongoing percentage of revenue paid to the franchisor.
Royalty Fee:
Regular contribution toward the franchise’s advertising fund.
Marketing Fee:
The estimated timeframe to recover your initial costs.
Breakeven Time:
The total amount required to launch the franchise.
Initial Investment:
The minimum liquid capital you must have on hand.
Cash Required:
The typical yearly revenue generated per franchise location.
Average Revenue:
The middle value of yearly revenue among franchise locations.
Median Revenue:
The largest reported annual revenue among franchisees.
Highest Revenue:
The smallest reported annual revenue among franchisees.
Lowest Revenue:
A broad sector defining similar types of franchise businesses.
Industry:
A more specific division within the broader industry.
Category:
The key individuals guiding the franchise’s strategy and growth.
Leadership:
The official business address of the franchisor’s headquarters.
Corporate Address:
Available financing options to help start the franchise.
Funding Year:
The main organization that owns the franchise brand.
Parent Company:
Cousins Subs Franchise Unit Growth Summary
A breakdown of corporate, franchised, and total units, with yearly net changes.
Total Units
Franchised Units
Corporate Units
| Units | 2020 | 2021 | 2022 |
|---|---|---|---|
| Total Units | 96 | 93 | 92 |
| Net Change YoY | -3 | -1 | |
| Franchised Units | 65 | 53 | 48 |
| Net Change YoY | -12 | -5 | |
| Corporate Units | 31 | 40 | 44 |
| Net Change YoY | 9 | 4 |
Initial Investment
The Cousins Subs franchise requires a low initial investment of $444,700 and a high initial investment of $954,500. This range accommodates various factors, including location, build-out costs, and equipment purchases. The franchise fee is set at $25,000, making it accessible for aspiring entrepreneurs looking to enter the sandwich shop market.
Financial Performance
On average, Cousins Subs units generate annual revenues of $877,666, with a median revenue of $1,029,332. The lowest annual revenue reported is $503,951, while the highest can reach up to $2,180,181. This financial performance indicates a strong potential for profitability within the franchise model.
Royalty and Marketing Fees
Franchisees are required to pay a royalty fee of 6% of gross sales, along with a marketing fee of 2%. These fees contribute to the overall brand strength and marketing initiatives that support franchisees in attracting and retaining customers.
Breakeven and Payback Period
The average breakeven time for a Cousins Subs franchise is approximately 12 months, allowing franchisees to recoup their initial investments relatively quickly. The investment payback period is around 21 months, indicating a favorable timeline for profitability and financial stability.
Corporate and Franchised Units
As of 2022, Cousins Subs operates a total of 92 units, with 48 being franchised and 44 corporate-owned. The trend in franchised units has shown a decline from 65 in 2020 to 48 in 2022, while corporate units have increased, reflecting a strategic focus on strengthening company-owned operations.
Operating Expenses
The average total operating expenses for a Cousins Subs unit amount to $415,069 annually. Key expenses include wages ($208,067), occupancy costs ($44,614), and other operating expenses. Understanding these costs is crucial for franchisees to manage their budgets effectively and maximize profitability.
Frequently Asked Questions
The initial investment for a Cousins Subs franchise ranges from $444,700 to $954,500, which includes the franchise fee and other startup costs.