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Togo's Franchise ProfileRestaurant Franchises > Quick-Service Restaurants |
How Much Does It Cost to Open a Togo's Franchise?
To start your journey with Togo's, you should be prepared for an initial investment ranging from a low of $231,500 to a high of $695,700. This investment includes an initial franchise fee of $30,000. Prospective franchisees must meet specific financial requirements, including a minimum of $150,000 in liquid cash and a net worth between $300,000 and $500,000. Once operational, you will be responsible for ongoing fees, which include a 5% royalty fee on gross sales for new units and a 3% marketing fee to support brand awareness and advertising efforts.
What is the Financial Performance and Scale of Togo's?
Togo's has established a significant footprint in the sandwich industry, maintaining a consistent presence with 157 franchised units as of 2023. The brand operates on a 100% franchised model, as there have been zero corporate-owned units reported over the last several years. Based on recent data, the system shows a wide range of performance, with the highest annual revenue per unit reaching $685,000. However, potential owners should plan for the long term, as the estimated breakeven time is approximately 47 months, with a full investment payback typically occurring around the 54-month mark.
Why Should You Consider Opening a Togo's Franchise?
Togo's is a well-known name in the "West Coast Original" sandwich scene, famous for its big, fresh, and meaty subs. Choosing this franchise allows you to tap into a proven business model that focuses on quality ingredients and a loyal customer base. The brand provides a structured environment where all locations are run by independent franchisees, fostering a community of dedicated entrepreneurs. With a median annual revenue per unit ranging between $300,000 and $500,000, Togo's offers a scalable opportunity for those who are passionate about the food service industry and providing high-quality deli experiences to their local neighborhoods.
Is a Togo's Franchise the Right Opportunity for You?
Deciding to join the Togo's family requires a balance of financial readiness and operational commitment. You should conduct thorough due diligence by reviewing the latest Franchise Disclosure Document and assessing the competition in your specific area. Because the brand relies entirely on franchised locations rather than corporate stores, the success of the network depends on the strength and dedication of its individual owners. If you have the required capital and the drive to manage a fast-casual environment, Togo's offers the training and support systems necessary to help you navigate the path from your initial investment to long-term business stability.
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 | 2021 | 2022 | 2023 |
|---|---|---|---|
| Total Units | 161 | 158 | 157 |
| Net Change YoY | +161 | -3 | -1 |
| Franchised Units | 161 | 158 | 157 |
| Net Change YoY | +161 | -3 | -1 |
| Corporate Units | 0 | 0 | 0 |
| Net Change YoY | 0 | 0 | 0 |
Investment Requirements
Starting a Togo's franchise requires a total initial investment ranging from a low of $231,500 to a high of $695,700. To qualify for ownership, prospective franchisees must meet specific financial benchmarks, including a required liquid cash injection of $150,000 and a total net worth falling between $300,000 and $500,000. These costs cover the essential startup expenses needed to launch a new location within the sandwich chain's network.
Ongoing Fees and Royalties
Operating a Togo's unit involves consistent financial commitments to the franchisor to support brand systems and growth. New units are subject to a 5% royalty fee on gross sales, alongside a 3% marketing fee dedicated to brand promotion and advertising. Additionally, there is an initial franchise fee of $30,000 required at the start of the agreement to secure the rights to operate under the Togo's name.
Financial Performance and Revenue
The financial landscape for Togo's units shows a wide range of performance across the network. The average annual revenue per unit stands at $708,453, while the median annual revenue for locations typically falls within the $300,000 to $500,000 range. While the highest performing units have reached $685,000 in certain reporting categories, the data suggests a diverse earning potential based on location and management.
Growth and Unit Count
Togo's maintains a stable footprint focused primarily on franchised operations. As of 2023, the chain consisted of 157 franchised units, following a slight consolidation from 161 units in 2021 and 158 units in 2022. Notably, the brand operates under a 100% franchise-reliant model for its store count, reporting zero corporate-owned or company-operated units over the last several years.
Return on Investment Timeline
For franchisees planning their long-term financial strategy, the brand provides specific benchmarks for recovery of costs. The estimated breakeven time for a Togo's location is approximately 47 months. Furthermore, the total investment payback period-the time required to fully recoup the initial capital outlay-is projected at 54 months, providing a clear window for expected profitability.
Franchise Opportunity
Togo's offers a specialized opportunity for entrepreneurs looking to enter the quick-service deli sector with a recognized brand. With a focus on high-quality ingredients and a "Big, Fresh, Meaty" reputation, the franchise provides a structured business model supported by a 100% franchised network. The combination of a moderate entry cost and a clear path to investment payback makes it a viable option for those committed to the sandwich industry.
Frequently Asked Questions
The total initial investment for a Togo's franchise ranges from $231,500 to $695,700. This estimate covers various startup costs, including the initial franchise fee, leasehold improvements, and equipment.