6/10

Franchimp Summary Rating

5 /10
Higher than 52% of peers
6 /10
Lower than 41% of peers

Franchise Summary

Description
The franchise offered is for the operation of a Togo’s Restaurant which will offer specialty sandwiches and related food and beverage items.
Company Background
Togo's is an international franchised restaurant chain offering specialty sandwiches and related food and beverage items. Founded in 1976, Togo's has been a popular lunch spot for more than 42 years with over 1,200 restaurants from California to Florida. Our signature sandwich is the Togo's Club(R), made with premium roast beef, turkey breast or ham, Swiss cheese, bacon and mayonnaise on white bread served hot or cold. We also offer a variety of salads including our popular Chef Salad(R) which features mixed greens topped with shredded cheddar cheese, hard-boiled egg slices and crumbled bacon bits tossed in a creamy poppy seed dressing served warm or cold.
Franchise Opportunity
Finding a delicious and healthy lunch can be hard. Togo's offers high quality, fresh sandwiches made with premium ingredients that are sure to satisfy your cravings. Our signature sandwich is the Turkey Tom, which features freshly roasted turkey breast on a French roll smothered in melted Swiss cheese and cranberry mayo. We also have vegetarian options like our Vegetarian Garden Wrap with hummus and sprouts or our Falafel Pita Pocket with all of your favorite Mediterranean flavors. At Togo's we believe that good food should not only taste great but feel great too! That's why we bake each bread slice from scratch daily using whole grains and never add artificial preservatives or fillers to any of our menu items. To ensure that you always get the freshest product possible, everything at Togo's is prepared just before it reaches you - so whether you're ordering online for delivery or picking up in store, every
Corporate Structure
We are a Delaware limited liability company formed on November 25, 2008. Our principal business address is 18 N. San Pedro St., San Jose, CA 95110, telephone 408 280 6585. We are a wholly owned subsidiary of Torta Operations, LLC, a Delaware limited liability company (“Torta”). Torta is a wholly owned subsidiary of Togo’s Holdings, LLC (“Holdings”), which is majority owned by Southfield Mezzanine Capital LP, a Delaware limited partnership (“SMC”). Torta also owns Togo’s Eateries, LLC (“Eateries”), which in turn owns Togo’s Franchised Eateries LLC (“TFE”). Eateries provides initial and ongoing support services to Togo’s franchisees. Eateries owns Togo’s trademarks. Torta also owns two companies that own and operate Togo’s restaurants – Togo’s Restaurants, LLC and MTC Restaurant Group, LLC. Torta, Holdings and all subsidiaries of Torta have the same principal business address as ours. SMC’s principal business address is 140 Greenwich Ave., 4th Floor, Greenwich, CT 06830. None of these affiliates have offered franchises in any line of business or operated any other business, except as disclosed in this Item 1.

Earnings Transparency

7 /10
This Franchise discloses slightly more information about the financial performance of their franchisees compared to other franchises in the same industry

Why do some franchises disclose more than others?
There are many reasons why a brand may choose to not include item 19 on their FDD: they could be a newer franchise, they may be in a unique industry that is not super profitable or well-known yet

Financial Performance of "Standard" Units

Average Revenue Per Unit

Compared vs. QSR Industry

$644,548 / unit

Franchise Type: Standard

Average Revenue During 2019

$644,548
$369,349
Industry Low
$2,179,984
Industry High

Franchisee Attrition

5 /10
This franchise's rate of attrition in 2012 of 4.24% was Slightly Higher than the 4% in the QSR industry. Generally speaking, a higher rate of attrition represents a less stable franchise system and a lower rate of attrition indicates a more successful system
What's Included in franchise attrition?
We define the franchisee attrition rate as the sum of terminations, re-acquisitions by franchisor, non-renewals, and ceased operations, divided by the number of outlest at the start of the year. It is a strong indicator of the strength of the underlying operating model

Franchise Types Available

# Type Investment Fees

Management Team

# Name Position

Distribution of Togo's Franchisees

Togo's Franchise System Development in 2019

FAQ

How much investment do I need to start my own Togo's business?
Franchisees typically require at least $337 to $594 investment to get their Togo's business started
What are the initial franchise fees for Togo's?
Franchisees typically need to pay at least $37 in fees directly to Togo's in order to earn the right to launch their business
How much money can I make with a Togo's franchise? What are the average revenues for a typical Togo's business?
We estimate that the average revenue of an individual Togo's unit is approximately $644,548. We based this on Item 19 in franchise disclosure document
How long do I need to commit to running a Togo's unit? What is my contractual commitment?
Togo's franchisees are typically required to sign up to a 10 year contract initially. The renewal length is 5 years. You can of course exit early but don’t expect to get any refund!

Accessibility

6 /10
The Franchisor's investment costs ranges from $337,000 to $594,500 which is Much Lower than the $0 to $0 average in the QSR industry
What determines the investment cost?
Item 7 of the Franchise Disclosure Document lays out the full list of initial investment costs, including the fee payable to the franchisor, security deposits, equipment, professional fees etc

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