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Togo's Franchise ProfileRestaurant Franchises > Quick-Service Restaurants |
What is the Initial Investment for a Togo's Franchise?
The initial investment for a Togo's franchise ranges from $238,500 to $477,700. This includes a franchise fee of $30,000. Potential franchisees should also be prepared for a cash requirement of $30,000 and a net worth requirement between $500,000 and $1,000,000. Understanding these financial commitments is crucial for aspiring franchise owners to ensure they have the necessary resources to launch their business successfully.
What Are the Ongoing Fees for Togo's Franchisees?
Togo's franchisees are subject to ongoing fees that include a royalty fee of 5% on gross sales and a marketing fee of 3%. These fees contribute to the overall operational costs and marketing efforts that help maintain the brand's presence in the competitive sandwich market. Franchisees should factor these fees into their financial planning to better understand their profitability and cash flow.
What is the Average Revenue for a Togo's Franchise Unit?
On average, a Togo's franchise unit generates annual revenue of approximately $606,999, with a median revenue of $612,015. The revenue can vary significantly, ranging from as low as $422,534 to as high as $1,315,467. Understanding these figures can help potential franchisees gauge the earning potential of a Togo's location and make informed decisions about their investment.
How Quickly Can Franchisees Expect to Break Even?
Franchisees can expect to break even within about 12 months of operation. Additionally, the typical investment payback period is around 24 months. This timeline is essential for franchisees to consider, as it provides insight into how quickly they can start seeing returns on their investment and plan their financial strategies accordingly.
Togo's 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:
Togo's Franchise Unit Growth Summary
A breakdown of corporate, franchised, and total units, with yearly net changes.
Total Units
Franchised Units
Corporate Units
| Units | 2017 | 2018 | 2019 |
|---|---|---|---|
| Total Units | 224 | 207 | 194 |
| Net Change YoY | -17 | -13 | |
| Franchised Units | 213 | 201 | 188 |
| Net Change YoY | -12 | -13 | |
| Corporate Units | 11 | 6 | 6 |
| Net Change YoY | -5 | 0 |
Company Overview
Togo's is a fast-casual sandwich franchise known for its fresh, high-quality ingredients and extensive menu of sandwiches, salads, and soups. Established in California, Togo's has built a loyal customer base by focusing on generous portion sizes and a commitment to customer satisfaction. With a strong emphasis on community involvement, Togo's aims to provide a welcoming atmosphere for diners while maintaining its reputation for delicious, made-to-order meals.
Franchise Investment
The initial investment to open a Togo's franchise ranges from $238,500 to $477,700, which includes a franchise fee of $30,000. Potential franchisees should also plan for a cash requirement of at least $30,000 and a net worth between $500,000 and $1,000,000. This investment structure allows for scalability and growth opportunities within the franchise system.
Royalty and Marketing Fees
Togo's franchisees are required to pay a royalty fee of 5% on gross sales, along with a marketing fee of 3%. These fees are essential for maintaining brand consistency and supporting national marketing initiatives that drive customer traffic to individual locations.
Financial Performance
On average, Togo's units generate annual revenues of approximately $606,999, with a median revenue of $612,015. The lowest recorded annual revenue per unit is $422,534, while the highest is $1,315,467. This performance indicates a solid potential for profitability within the franchise model.
Breakeven and Payback Period
Franchisees can expect to reach their breakeven point within 12 months of operation. The investment payback period is estimated at 24 months, providing a clear timeline for return on investment and financial planning for new franchise owners.
Growth and Expansion
As of recent years, Togo's has seen a steady decline in the number of franchised units, from 213 in 2017 to 188 in 2019. Despite this, the brand continues to focus on strategic growth and expansion opportunities, encouraging potential franchisees to explore the benefits of joining a well-established franchise in the competitive sandwich market.
Frequently Asked Questions
The initial investment for a Togo's franchise ranges from $238,500 to $477,700. This cost includes the franchise fee, equipment, and other startup expenses.