Port of Subs Franchise FDD, Costs & Fees (2024)

KEY FRANCHISE STATS

All you need to know about this franchise in a snapshot

Initial franchise fee
$25,000
Investment required
$311,000 - $528,000
Royalty fee
6.00%

Port of Subs: Crafting Delicious Subs and Satisfying Customers Since 1972

Port of Subs is a beloved American chain specializing in submarine sandwiches, with its origins in Reno, Nevada. From its humble beginnings, it has expanded to become a culinary favorite, particularly in the Western United States.

The story of Port of Subs started in 1972 when John Larsen launched his first "Sub Shop" in Sparks, Nevada. The concept quickly gained traction, leading to a rebranding in 1975 to distinguish it from competitors, and it was then christened as Port of Subs.

Today, Port of Subs is celebrated for its delicious subs, wraps, salads, desserts, and an assortment of beverages, offering a delightful dining experience for its patrons.

In 1985, Port of Subs ventured into franchising, capitalizing on its success from the previous years. 

Initial investment

Here's what you would need to invest if you were to start this franchise. These costs are provided by the franchisor in the Franchise Disclosure Document.

Type of Expenditure Amount
Initial Franchise Fee $25,000
Site Review $0 – $1,500
Training Fee & Expenses $7,500 – $9,000
Architectural, Engineer, and Legal Counsel $12,500 to $19,750
Construction Management $12,500 to $17,500
Real Estate, Leasehold Improvements, and Construction Costs $95,000 to $196,600
Signage, Graphics, & Interior Décor Items $6,500 to $18,375
Furnishings, Fixtures, and Standard Equipment $96,000 to $145,000
POS and Technology Systems, including Initial Setup $26,500 to $38,500
Insurance $1,500 to $2,500
Initial Inventory & Smallwares $5,000 to $10,000
Grand Opening Marketing $5,000 to $7,500
Licenses, Fees, and Deposits $2,500 to $12,000
Additional Funds – Initial 3 Months $15,000 to $25,000
TOTAL $310,500 to $528,225

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Number of units

2023
Franchised units

114

113

114

Company-owned units

19

16

16

Total units

133

129

130

Franchise Disclosure Document

Training 

Training Program: Port of Subs delivers a blended learning training program, incorporating online, classroom, and on-site training at an approved training restaurant.

Attendance Requirements: At least three individuals must attend and successfully complete the initial training program. This includes the franchisee’s Operating Principal, a full-time General Manager, and one additional employee approved by Port of Subs.

Training Content: The program covers sales techniques, product orientation, accounting procedures, food preparation, and operations management.

Location and Duration: Training is conducted at designated Port of Subs locations, which may include their headquarters. The program features pre-training videos and workbooks, classroom sessions, and hands-on training.

Training Expenses: Port of Subs covers direct training costs, such as instructors and materials. However, franchisees are responsible for all indirect training expenses. Additionally, franchisees will pay a Training Fee of $5,000 for Principal Trainees upon signing the Franchise Agreement.

Territory Protection

Franchisees are not provided with an exclusive territory. They may encounter competition from other franchisees, company-owned outlets, or other distribution channels and competitive brands controlled by the franchisor.

However, franchisees are assigned a designated location for operating their Port of Subs restaurant. The boundaries and size of this "Designated Area" are determined based on several factors.

The franchisor and its affiliates retain the right to establish and operate additional outlets within the franchisee's Designated Area. These outlets may be permanent, temporary, or seasonal. Additionally, they can market their products and services within or attract customers from the Designated Area without providing any compensation to the franchisee.

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