1. What type of franchise is available?
LEE’S SANDWICHES INTERNATIONAL, INC.
offers you the opportunity to operate one of four types of franchised units. The Production Unit offers the full line of LEE’S SANDWICHES
products and producing the dough for baguettes and supplies the needs of other LEE’S SANDWICHES
entities. The Non-Production Unit also offers the full line of LEE’S SANDWICHES
products, but does not produce the baguettes and supplies, all within a strip mall or smaller free - standing locations. The Mall Unit is designed for mall applications such as food court areas with common seating, and offers all the essential elements of the Production Unit except for production of the baguettes.
FOR NEW STATES AND AREAS
, you will be required to open a Baguette Factory or Production unit first. After one has been opened, Non-Production units may be opening around the Production unit. We recommend a Baguette Factory Production unit for potential franchisees that plan on growing 5 or more stores in a territory. A standard Production unit is recommended for 5 or less stores. Production units require more space, and involve more equipment than Non-Production units. This is necessary for the in-store baguette production to supply your store(s). After a Production unit is established, it may support Non-Production units with baguettes in the surrounding areas. For Non-Production units and Mall units, the baguettes will either have to be received from a nearby same-franchisee owned Production unit, or from our Southern California warehouse if your Non-Production unit is established in the Southern California vicinity.
2. How much does the franchise cost?
The estimated initial investment to establish a LEE’S SANDWICHES
Baguette Factory Production Unit ranges from $1,109,000 to $1,835,000 with a Franchise Fee of $75,000. Production Unit ranges from $640,000 to $1,269,500 with a Franchise Fee of $60,000. The estimated initial investment for a Non-Production Unit ranges from $298,330 to $846,370 and includes a $50,000 Franchise Fee. The Mall Unit has an estimated initial investment ranging from $192,830 to $404,870, which includes a Franchise Fee of $35,000.
3. How much money can I earn each year?
We invite you to speak with our current franchisees to learn about their sales and profit numbers.
4. How much is the fee for continuing support services?
The continuing services, or “royalty” fee is 6.9% of your Gross Sales, which must be paid on a weekly basis. The fee entitles you to use the LEE’S SANDWICHES
trade name, and the associated service marks, access to operational systems, marketing strategies, ongoing guidance and other benefits that come with being a part of the LEE’S SANDWICHES
5. Will I have an exclusive territory?
You will not be granted an exclusive territory but you will receive a protected territory that will be determined by you and us together when you sign a franchise agreement. The protected territory for a store other than a mall unit typically is defined in terms of a radius around the unit, but can vary.
6. What about advertising?
The LEE’S SANDWICHES
name and reputation is an important part of your business. If you have a Baguette Factory Production Unit you are required to spend at least $20,000 to $30,000 on grand opening advertising during your first 3 months of operation. If you have a different Production Unit or a Non-Production Unit you will be required to spend at least $10,000 to $20,000 on grand opening advertising for the first three months of operation. With a Mall Unit you are required to spend at least $1,000 to $3,500 on grand opening advertising for the first 3 months. We will provide you with guidelines for your grand opening advertising. You will also be required to spend at least 2% of your gross sales on a monthly basis on local advertising and promotion. In addition, once implemented, you will be required to contribute an amount of up to 2% of your Gross Sales on a weekly basis to the LEE’S SANDWICHES
system wide Marketing Fund, designed to promote overall brand image.
7. How much training is provided in the LEE’S SANDWICHES system?
You and your designated manager will be required to attend an initial training course. This initial training will focus on various aspects of you restaurant and include both classroom and on-the-job training. We provide this training to you as part of your Franchise Fee.
8. What form of business start-up assistance and ongoing support will I receive?
For approximately 1 week before opening of your franchised business we will furnish one of our representatives on site for opening and operations assistance. In addition throughout the franchise term, we are available for operation assistance and guidance in various aspects of your LEE’S SANDWICHES
Restaurant. We will also loan you a copy of the LEE’S SANDWICHES
9. What is the term of the LEE’S SANDWICHES Franchise Agreement?
The term of the Franchise Agreement for a Production Unit is 10 years from the date the Franchise Agreement is signed. If you have substantially complied with the terms of the Franchise Agreement, the franchise for the Production Unit is renewable for 3 additional successive terms of 5 years each. The term of the Franchise Agreement for a Non-Production Unit is 5 years from the date the Franchise Agreement is signed. If you have substantially complied with the terms of the Franchise Agreement the franchise for the Non-Production Unit, is renewable for 3 additional successive terms of 5 years each. The term of the Franchise Agreement for a Mall Unit is 5 years from the date the Franchise Agreement is signed. If you have substantially complied with the terms of the Franchise Agreement the franchise for the Mall Unit, is renewable for 3 additional successive terms of 5 years each.
10 .What is my next step?
Complete the Confidential Franchise Evaluation Form
and return it to us. If, after reviewing your qualifications, we feel you have the potential to join the LEE’S SANDWICHES
Franchise System, you will be invited to meet with us in person. If you have any questions, in the meantime, please feel free to call us at (800) 640-8880.