About Sub-Ology Franchise
Sub-Ology is a fast casual restaurant franchise centered on premium submarine sandwiches made with fresh, high quality ingredients.
The brand emphasizes generous portions, creative recipes, and a menu that goes beyond the standard sub shop offerings.
Each location aims to create a neighborhood gathering spot where customers enjoy a step above the typical quick service sandwich experience.
Sub-Ology Franchise Cost & Fees
| Fee Type | Amount | Notes |
|---|---|---|
| Initial Franchise Fee | $30,000 | One-time payment upon signing |
| Royalty Fee | 6% of Gross Sales of gross sales | Ongoing; paid monthly |
| Marketing/Ad Fund | Up to 3% of Gross Sales, currently 1% of Gross Sales (Brand Development Fund); Up to 2% of monthly Gross Sales, currently not assessed (Local and Regional Advertising Cooperatives) | National brand fund |
| Total Investment Range | $279,553 – $438,458 | Includes build-out, inventory, working capital |
The investment range of $280K–$438K reflects variability in build-out costs, store size, lease terms, and market. The combined royalty (6% of Gross Sales) and marketing fee (Up to 3% of Gross Sales, currently 1% of Gross Sales (Brand Development Fund); Up to 2% of monthly Gross Sales, currently not assessed (Local and Regional Advertising Cooperatives)) are ongoing costs paid as a percentage of gross sales.
Investment Breakdown (Item 7)
| Item | Low | High |
|---|---|---|
| Initial Franchise Fee | $30,000 | $30,000 |
| Construction and Leasehold Improvements | $103,500 | $199,000 |
| Lease Deposits and Rent – Three Months | $9,645 | $11,129 |
| Furniture and Fixtures | $51,496 | $53,000 |
| Signage | $2,500 | $10,000 |
| Computer, Software, and Point of Sale System | $3,407 | $10,996 |
| Grand Opening Marketing | $3,000 | $5,000 |
| Initial Inventory | $10,593 | $13,242 |
| Utility Deposits | $605 | $800 |
| Insurance Deposits – Three Months | $132 | $397 |
| Travel for Initial Training | $1,500 | $3,600 |
| Professional Fees | $7,500 | $10,000 |
| Licenses and Permits | $500 | $1,500 |
| Printing, Stationery, and Office Supplies | $2,720 | $10,300 |
| Additional Funds – Three Months | $52,455 | $79,494 |
Additional Fees (Item 6)
| Fee Type | Amount |
|---|---|
| Transfer Fee | 50% of the then current initial franchise fee payable by a franchisee who is new to the Sub-Ology system |
| Renewal Fee | 25% of the then current initial franchise fee |
| Technology Fee | Up to $500 per month, currently $250 per month |
| Audit Fee | Cost and expenses of audit |
| Franchisee Directed Local Marketing | 1% of Gross Sales or $500 per month, whichever is greater |
| POS System | Currently $250 per month |
| Online Ordering, Customer Rewards, and Gift Cards | Currently not implemented by us but may be implemented in the future |
| Software Fees | $125 per month |
| Annual Conference Attendance Fee | Our then current conference fee, not greater than $1,500 |
| Additional Employee Initial Training | Currently $500 per person per day |
| Supplemental On-Site Training | Our then current daily rate per trainer, plus expenses we incur. Current rate is $500 per day |
| Interest | 1.5% per month from due date or highest rate allowed by law |
| Reporting Non-Compliance | $150 per occurrence |
| Operations Non-Compliance | $450 to $1,000 per occurrence |
| Payment Non-Compliance | $150 per occurrence |
| Collections | Actual fees, costs, and expenses |
| NSF Check Fee or Failed Electronic Fund Transfer | 5% of amount or $50, whichever is greater, or maximum fee allowed by law |
| Non-Compliance | Actual fees, costs, and expenses |
| Supplier Evaluation | Actual fees, costs, and expenses |
| Management Service | 20% of Gross Sales, plus expenses |
| Operations Manual Replacement Fee | $500 |
| Relocation Fee | Costs and expenses |
Training Program (Item 11)
| Detail | Information |
|---|---|
| Total Duration | Approximately 10 days |
| Classroom Training | 24 |
| On-the-Job Training | 56 |
| Training Location | Cranford, New Jersey |
| Additional Training | Franchisor may require franchisees and/or Operating Managers to participate in supplemental on-site training, for which a fee of $500 per trainer per day plus expenses will be charged. System-wide training programs may also be established, with franchisees responsible for travel and expenses. |
Territory Rights (Item 12)
| Detail | Information |
|---|---|
| Territory Type | Non-exclusive with designated territory protection |
| Exclusive Territory | No |
| Territory Size | Generally, the smaller of a distance of two miles from the Restaurant Location in all directions travelable by road or a territory encompassing a population of 50,000 people. |
| Description | Once an approved site is identified, an area around it will be designated as the "Designated Territory." This territory is generally the smaller of a two-mile radius or an area with a population of 50,000. For non-traditional or captive market facilities (e.g., malls, airports), the territory may be limited to physical boundaries. The franchisor will not establish or grant another franchise within the Designated Territory, but franchisees may face competition from other Sub-Ology restaurants or other channels of distribution outside their designated territory. |
Renewal, Termination & Transfer (Item 17)
| Detail | Information |
|---|---|
| Initial Term | 10 years |
| Renewal Term | one additional 10 year term |
| Renewal Fee | 25% of the then current initial franchise fee |
| Renewal Conditions | To renew, franchisees must be in compliance with all agreements, provide 180 days' written notice, sign the then-current renewal Franchise Agreement and related agreements, sign a general release, remodel/upgrade the Restaurant to current standards, secure legal right to occupy premises, and complete any additional training. Owners and their spouses must also guarantee renewal terms. |
| Transfer Fee | 50% of the then current initial franchise fee payable by a franchisee who is new to the Sub-Ology system |
| Transfer Conditions | Transfers require prior written consent from the franchisor. Conditions include: 30 days' written notice, satisfaction of all monetary and other obligations to franchisor/affiliates, no default/material breach of agreements, transferee must agree to all terms and conditions, transferee's owners/spouses must personally guarantee obligations, franchisee/owners/spouses must sign a general release, transfer of approved location and business assets, transferee/managers must complete training, and payment of the transfer fee. Franchisor's approval is discretionary. |
| Termination for Cause | Franchisor can terminate for various defaults, including: insolvency/bankruptcy, abandonment of obligations, failure to meet development schedule, three or more curable defaults, intentional/knowing refusal to comply with agreement/standards, operation in violation of laws posing health/safety threat, loss of premises, intentional inaccuracies in reports, unauthorized transfer, disclosure of confidential information, engaging in prohibited activities, felony conviction, or failure to comply with Anti-Terrorism Laws. Some defaults have a 10-day or 30-day cure period. |
| Non-Compete Period | 24 months after expiration or termination |
| Non-Compete Details | During the term of the franchise agreement, franchisees and their owners/spouses cannot participate in any competitive business. For 24 months after termination or expiration, they cannot participate in a competitive business within the Designated Territory, a 25-mile radius around it, or a 10-mile radius around any other Sub-Ology Restaurant. This includes owning 3% or more of a publicly traded competitive company, or operating, managing, funding, or performing services for a competitive business. |
Operations & Supply (Items 8 & 15)
| Detail | Information |
|---|---|
| Owner-Operator Required | Yes |
| Participation Details | The franchisee or, if a Corporate Entity, its designated Managing Owner, must be personally responsible for the management and overall supervision of the Restaurant. The Managing Owner must complete initial training and be approved by the franchisor. While personal day-to-day participation is recommended, an approved Operating Manager can be hired to supervise on-site operations, provided they meet franchisor standards, complete training, and sign confidentiality agreements. Each Restaurant must always be managed and supervised on-site by either a Managing Owner or an Operating Manager. |
| Required Suppliers | Franchisees must purchase or lease certain source-restricted goods and services (e.g., System Supplies, branded furniture/fixtures, signage, POS system, computer equipment, credit card processing, online ordering/customer rewards/gift card systems, branded marketing materials) from franchisor, its affiliates, or designated/approved suppliers. The franchisor may designate itself or a third party as the exclusive supplier for the System. |
| Supply Restrictions | Franchisees may have to buy or lease items from the franchisor or a limited group of designated suppliers, which may be more expensive than similar items available elsewhere. The franchisor may designate itself or a third party as the sole and exclusive supplier. Franchisees must meet specifications and standards for all products and services. |
| Franchisor Revenue from Suppliers | Franchisor and/or its affiliates may receive rebates, payments, and other material benefits from suppliers based on franchisee purchases. As of the Issuance Date, no revenue has been received from franchisee purchases of source-restricted products or services. |
Financing (Item 10)
| Detail | Information |
|---|---|
| Financing Available | No |
| Description | We do not offer direct or indirect financing. We do not guarantee your note, lease, or other obligation. |
Sub-Ology Franchise Earnings — Item 19
Past financial performance does not guarantee future results. Individual results will vary.
Sub-Ology Litigation & Risk Flags
Litigation and bankruptcy data is sourced from Items 3 and 4 of the FDD. Always verify current status directly from the most recent FDD.
Sub-Ology System Growth
Sub-Ology currently operates 0 franchised locations and 1 company-owned units. Unit count data is sourced from Item 20 of the FDD.
Unit History (Item 20)
| Year | Opened | Closed | Total |
|---|---|---|---|
| 2020 | 0 | 0 | 1 |
| 2021 | 0 | 0 | 1 |
| 2022 | 0 | 0 | 1 |
Transfers: 0 | Closures: 0
State Registrations
Registered in 23 states: California, Connecticut, Florida, Hawaii, Illinois, Indiana, Kentucky, Maine, Maryland, Michigan, Minnesota, Nebraska, New York, North Carolina, North Dakota, Rhode Island, South Carolina, South Dakota, Texas, Utah, Virginia, Washington, Wisconsin
Franchisor Financials (Item 21)
Audited by Metwally CPA PLLC for year ending December 31.
Sub-Ology Franchise — FAQ
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