Do you want to open a sandwich shop business by buying Which Wich franchise? If YES, here is how much it cost to open a Which Wich franchise successfully. Which Wich® Superior Sandwiches was established in Dallas in late 2003 by restaurant entrepreneur, Jeff Sinelli. This national sandwich franchise chain is renowned for its customizable sandwiches, creative ordering system, and personalized sandwich bag.
For guests to order at Which Wich, they will be required to mark their custom order on sandwich bags that are already pre-printed with the menus offered by the store. In the restaurant, you will be allowed to choose from their wide range of meals from sandwiches, cheese, chips, milkshakes and cookies to spreads and vegetables. And also you have the choice to choose from over 50 different sandwich types.
In 2019, Entrepreneur Magazine named Which Wich one of its Fastest Growing Franchises and in 2018, Which Wich was ranked as the #9 sandwich brand on the magazine’s Top 200 Food and Restaurant Franchises. Also in 2017, Which Wich ranked as #9 on Fast Casual’s Top 100 Movers and Shakers and landed at #20 on the Franchise Times Fast & Serious list.
In addition in 2016, Restaurant Business named Which Wich the first winner of its Future 50 Pacesetter award. Which Wich is the recipient of a Nation’s Restaurant News Menu Masters “Healthful Innovations” award and has been named by Forbes as one of their “30 Best Franchises to Buy.” Which Wich presently has 500 locations open or in development in 40 states and 12 countries.
If you desire to own a Which Wich Franchise, then you should be ready to face a few challenges. Agreeably, the setbacks will be quite minimal if you take your time to do the research. Which Wich started the franchise in the year 2005 and up to date, they have close to 450 franchise units with just 3 company-owned units. This is just an indication that the company is franchise-focused.
The Which Wich franchise opportunity should be approached with a business mindset, considering the pros and cons, and then analyzing your skills and business location. You will be expected to make some financial investment if you want to buy into a Which Wich Franchise. And the question now remains, what is the cost of a Which Wich Franchise?
Financial Requirements of Opening a Which Wich Franchise in the United States
According to Which Wich Franchise FDD, below are 39 important franchise fees to consider when looking buying this franchise. Note that all fees and expenses outlined below are non-refundable and, unless otherwise indicated, Which Wich imposes all fees uniformly, and all fees are payable to it via electronic funds transfer.
1. Document Preparation Fees: $250 to $750
- Once Which Wich approves your franchise application for your first Store, you are expected to pay Which Wich a $750 application and document preparation fee for your Development Agreement and first Franchise Agreement.
- You are also expected to reimburse Which Wich for any out-of-pocket attorneys’ fees that it incurs in connection with awarding you a franchise.
- Once Which Wich prepares your second and additional Franchise Agreements, if applicable, you will pay Which Wich $250 to prepare each Franchise Agreement and $250 for any amendment agreement that may be required.
2. Initial Franchise Fee: $25,000 to $30,000
- The company’s initial franchise fee is $30,000 for your first Store and $25,000 for each additional Store.
- Note that payment of the initial franchise fee is due at the time you sign the additional Franchise Agreement.
- This initial franchise fee is calculated uniformly for all franchisees and is non-refundable upon payment.
Veteran’s Discount: $10,000
- Which Wich offers a military discount to veterans who have a certified DD214 issued by the U.S. Department of Defence!
- Note that this discount is $10,000 off the initial franchise fee of $30,000 for the first Franchise Agreement entered into for the development of a new Store. Which Wich may, but is not required to, offer its then-current military discount (if any) on the second and subsequent Franchise Agreements entered into for the development of new Stores.
3. Standard Development Program:
100% of the initial franchise fee for the first Store ($30,000), plus 50% of the initial franchise fee for each additional Store ($12,500, which is half of $25,000) to be developed under the Development Agreement
- Once Which Wich awards you multi-unit development rights, you are expected to sign its Development Agreement.
- Once you sign the Development Agreement, you will pay Which Wich a development fee equal to 100% of the initial franchise fee for the first Store to be developed under the Development Agreement ($30,000) plus 50% of the initial franchise fee for each additional Store ($12,500, which is half of $25,000) to be developed under the Development Agreement.
- If it is necessary to amend the Development Agreement to reflect negotiated changes, you will pay Which Wich an additional $250 once the Development Agreement is signed to help offset its legal costs of preparing the amendment.
- Immediately you sign the Development Agreement, you will sign the Franchise Agreement for the first Store, and Which Wich will credit $30,000 of your development fee payment to satisfy the $30,000 initial franchise fee due under the Franchise Agreement.
- Once you sign each additional Franchise Agreement under the Development Agreement, Which Wich will credit $12,500 of your development fee payment toward payment of the initial franchise fee of $25,000, and you will pay Which Wich the remaining $12,500 initial franchise fee balance at that time.
- The development fee is calculated uniformly for all franchisees and is non-refundable upon payment.
4. Large Multi-Unit Development Program: $20,000 per Store
- If you decide to acquire rights to develop five or more Stores with no territory protection, Which Wich will reduce the initial franchise fee for each Store to be developed under the Development Agreement to $20,000 per Store.
- You are expected to sign Which Wich’s Development Agreement and pay 100% of the initial franchise fee for each Store to be developed under the Development Agreement. For instance, if you are developing five Stores with no territory protection, you will pay the non-refundable development fee of $100,000 at the time you sign the Development Agreement.
5. Limited Protection Development:
100% of the initial franchise fee for each Store to be developed under the Development Agreement
- Which Wich’s Development Agreement permits development of a certain number of Stores in a defined development area but does not offer territory protection.
- Immediately you decide to acquire rights to develop five Stores under a Development Agreement with limited territory protection, Which Wich will grant you such rights in consideration of a non-refundable development fee equal to 100% of the initial franchise fee for each Store to be developed under the Development Agreement.
- For instance, if you are developing five Stores with limited territory protection, you will pay the non-refundable development fee of $130,000 at the time you sign the Development Agreement.
- The development fee is calculated uniformly for all franchisees and is non-refundable upon payment.
6. Site Selection Assistance:
$500 per additional site visit, plus out-of-pocket expenses that Which Wich incurs in providing the assistance, including costs of transportation, lodging, and meals
- Note that before you select a site for your Store, at your request and/or if Which Wich determines it necessary, Which Wich’s representative will visit you one time in your development area, without charge, to either assist you in finding suitable sites or to evaluate sites that you have identified.
- Immediately you request additional site visits or assistance, or if Which Wich believes additional site visits or assistance are necessary, you are expected to pay Which Wich $500 per additional site visit and pay or reimburse it its out-of-pocket expenses that it incurs in providing the assistance, including costs of transportation, lodging, and meals.
- Once you have an approved site for the Store, you are responsible for site development and build-out.
7. Pre-Opening Assistance Fee: $500 for each pre-opening assistance visit
- Which Wich reserves the right to offer you pre-opening assistance and advice it deems appropriate, by telephone or remote means, which may include advice regarding site development and build-out, employee staffing levels and recruiting resources, purchasing and inventory control, marketing methods, and general operational matters.
- Note that Which Wich’s pre-opening assistance does not include onsite visits to the Store. If you request an on-site visit, or if Which Wich determines it is necessary, you are expected to pay it $500 for each pre-opening assistance visit it makes to the Store, plus you are expected to pay or reimburse it its out-of-pocket expenses that it incurs in providing the assistance, including costs of transportation, lodging, and meals.
8. Opening Assistance Fee: $5,000
- With respect to your first Store, Which Wich will offer 10 days of onsite opening assistance. To help reimburse it for its expenses related to this assistance, you are expected to pay Which Wich an Opening Assistance Fee, which is a non-refundable, flat fee of $5,000.
- Immediately you ask Which Wich to offer additional assistance for your opening, Which Wich may charge you for it, based on its then-current per diem rate plus its related expenses, including costs of travel, lodging, and meals.
- Which Wich’s current per diem fee is $250 per day per person providing assistance and these amounts are not refundable.
- With respect to your second or additional Stores, although it is not required to offer pre-opening or opening assistance, if you request its assistance, or if it considers the assistance necessary, Which Wich will offer the assistance for the same amount as the then-current Opening Assistance Fee.
- When you are opening a Co-brand Store, the Opening Assistance Fee and the number of days Which Wich will offer assistance will be the same as described above.
9. Royalty Fee: 6% of Gross Sales
- You will pay the royalty fee by electronic funds transfer.
- Gross Sales is the total Selling Price of all services and products and all income of every other kind and nature related to your Which Wich Store, including income related to catering operations and special events and the full value of meals offered to your bona fide employees as a benefit of their employment (except you may deduct from Gross Sales the value of any employee discounts that are given during the week in which the meals are offered), whether for cash or credit and regardless of collection in the case of credit.
- Gross Sales does not include:
- 1) Receipts from any public telephone, vending machine, or video games installed in your Which Wich Store, except for your share of the revenues;
- 2) Sales (or similar) taxes that you collect from your customers if you transmit them to the appropriate taxing authority;
- 3) Proceeds from isolated sales of trade fixtures that are not part of the products and services you offer and that do not have any material effect on the operation of your Which Wich Store;
- 4) Returns to shippers or manufacturers.
- Gross Sales also does not include proceeds from the sale of gift certificates or stored value cards (all proceeds from the sale of gift certificates and stored value cards belong to Which Wich), but it does include the redemption value of gift certificates and stored value cards at the time purchases are made.
- You are tasked with the accurate reporting of gift certificate and stored value card sales and the corresponding impact on Gross Sales.
- Note that you have until 30 days after the end of Which Wich’s fiscal year to notify it of any errors you made in calculating Gross Sales as those errors relate to the reporting of gift certificate and stored value card sales.
- “Selling Price” is defined as the non-discounted, regular menu price.
10. Brand Development Fund Contribution: 3% of Gross Sales
- Note that you will contribute to the Brand Development Fund by electronic funds transfer.
11. Media Fund: up to 2% of Gross Sales
- Due Date: Weekly; once instituted.
- Upon the opening of the 1,000th Which Wich Store, Which Wich may require you to contribute up to 2% of Gross Sales to help pay for the placement of national advertising.
- Note that payments will be made through electronic funds transfer.
12. Local Advertising Requirement: 1% of Gross Sales
- Which Wich may need all or a portion of the local advertising requirement dollars be contributed to a franchisee advertising association and/or to the Brand Development Fund.
- Which Wich may also need you to pay it directly your required local advertising contribution, then it will reimburse you for your actual local advertising expenditures and contribute the remainder to the Brand Development Fund
- Note that all payment will be made by electronic funds transfer.
13. Franchisee Advertising Association:
As mandated by the applicable Association, plus all fees associated with forming the Association
- Due Date: As determined by the applicable Association.
- Presently, Which Wich has no Advertising Associations. If any are established, you are expected to participate in a franchisee Association, if Which Wich requires.
- Have it in mind that all members of the Association are expected to pay regular dues and all fees associated with the formation of the Association. Which Wich may require you to pay your required Advertising Association contributions to it via electronic funds transfer if it does, it will then submit your contributions to the Association.
14. Unauthorized Advertising: $1,000 per occurrence
- Due Date: Once billed.
- Which Wich reserves the right, at its option, to assess you a $1,000 fee per occurrence for the use of any unauthorized marketing and advertising materials. If it assesses this fee, it is not limited or precluded from seeking other remedies available to it.
15. Business Directory Listing: Unavailable
- Due Date: On demand.
- Note that you will place and pay the cost of business directory listings (which may be print and/or electronic format) in the directories and categories as Which Wich specifies.
16. Merchandise for Resale; Equipment; Décor Items: Unavailable
- Due Date: On demand.
- Which Wich may offer to you at a reasonable cost certain collateral merchandise for resale that identifies the system (for example, caps and t-shirts), equipment, and décor items
17. Related Promotional Costs: This cost tend to vary per promotion
- Due Date: On demand.
- You are expected to participate, at your expense, in any loyalty programs, prize promotions, sweepstakes, meal deals, and/or any other promotional campaign that Which Wich designates.
18. Interest: 18% per year or the maximum lawful rate
- Due Date: On demand.
- Which Wich may charge interest on all overdue amounts
19. Non-Sufficient Funds Fee: $50 for each returned check or draft, plus all expenses Which Wich incurs
Due Date: On demand.
20. Additional Opening Assistance:
If requested by you or required by Which Wich, then-current per diem, plus reimbursement of Which Wich’s travel-related expenses; its current per diem rate is $250 per person who offers assistance
- Due Date: Before additional training.
- You are expected to also pay the expenses of your personnel who attend training.
- Subject to availability of Which Wich’s personnel.
21. Additional Training: As determined at the time, plus expenses of your personnel who attend training
- Due Date: Before additional training.
- You are expected to also pay the expenses of your personnel who attend training.
22. On-Site Remedial Training:
Then-current per diem fee for remedial training, plus reimbursement of Which Wich’s travel-related expenses; its current per diem rate is $250 per person who offers training
- Due Date: Once billed.
- Once you ask, or if Which Wich requires, Which Wich will (subject to availability) offer trained representatives to conduct onsite remedial training at your Store.
23. Transfer Fee:
There is no fee to transfer for convenience of ownership or non-controlling interest, except reimbursement of Which Wich’s attorneys’ fees. For all other transfers of Stores: at Which Wich’s election, either $7,500 if transferee is an existing franchisee or $10,000 if transferee is not an existing franchisee; $10,000 if the Store being transferred is a Co-brand Store.
- Due Date: Once transfer is requested.
- Fee is non-refundable.
- Convenience of ownership: There is no fee if an individual assigns his or her rights to a corporation, limited liability Company, or other entity controlled by the same individual.
- All transfer fees are non-refundable.
- Once the Store is being transferred is a Co-brand Store, the transfer fee will be paid under the terms of the Which Wich Franchise Agreement. You will not pay two transfer fees to transfer your Co-brand Store.
24. Relocation Fee:
Note that no fee is charged if relocation is due to an event of force majeure; for requested relocations, there is a $5,000 Relocation Fee
- Due Date: Upon approval of request to relocate.
25. Private or Public Offering Fee:
Reimbursement of Which Wich’s reasonable costs and expenses associated with the proposed offering
- Due Date: Once billed.
- Which Wich limits its review to the manner in which the offering materials treat Which Wich’s relationship with you
26. Renewal Fee: 50% of Which Wich’s then-current initial franchise fee
- Due Date: Signing of renewal Franchise Agreement.
- You are expected to give Which Wich at least 12 months’ and not more than 24 months’ notice to renew, and meet other renewal conditions.
- Inspection and Testing: Cost of inspection, if applicable, and cost of test
- Due Date: Once billed.
- Before approving a supplier at your request, Which Wich may require you to pay the cost of testing the supplier’s products and the cost of inspecting its facilities, including reimbursement of transportation, lodging, meals, and salary expense for individuals performing the evaluation.
- Indemnification: This tend to vary according to loss
- Due Date: On demand.
- You are expected to defend and indemnify Which Wich against certain losses relating to your actions.
- Audit Fee: Cost of audit
- Due Date: Once billed.
- This is payable once an audit shows you have understated any amount owed to Which Wich by 3% or more.
- Unreported Sales Fee: $1,000 per failure to report
- Due Date: On demand.
- This is payable once Which Wich discovers your failure to account for Gross Sales through any method other than an audit.
- Intranet Fee: A substantial amount based on Which Wich’s costs; $100 per month as of the date of the disclosure document
- Due Date:
- The Intranet Fee is an amount Which Wich determines based on its costs.
- Insurance Fee: A substantial amount based on Which Wich’s administrative expenses
- Due Date: On demand.
- Once you fail to maintain the required insurance, Which Wich may (but need not) obtain it for you. If it does, it will charge you a fee, plus its administrative expenses.
- Enforcement Costs (Administrative Fee): This tends to vary.
- Due Date: As incurred.
- Once you fail to comply with the Franchise Agreement, Which Wich has the right to charge you a fee not to exceed $100 per hour for costs it incurs in enforcing the Franchise Agreement due to your failure to comply with any provision, plus attorneys’ fees and other related costs.
- Online Ordering: Close to $200 per month as of the date of the disclosure document
- Due Date: Once billed.
- You are expected to participate in the customer online ordering program, and you are expected to pay for the costs associated with the program.
- Operating Days: $250 per day, each day your Store is closed without permission
- Due Date: On demand.
- You are expected to open and operate the Store seven days a week unless otherwise directed in the Manual or previously approved by Which Wich in writing.
- Customer Comment Reimbursement: This fee tend to vary
- Due Date: On demand.
- In the event customers contact Which Wich with complaints about your Store, you are expected to reimburse it for any payments it makes to the customer, and the payment made to the customer will be at its discretion.
- Which Wich requires you to pay the Customer Comment Reimbursement Fee through electronic funds transfer
- Equipment Replacement or Repair Fee: This fee tend to vary
- Due Date: As incurred.
- In the event equipment is removed because it does not comply with System standards, Which Wich has the right to replace such equipment or to make arrangements to have such equipment serviced, repaired, and/or cleaned at your expense.
- De-identification Fee: This fee tend to vary
- Due Date: On demand.
- Which Wich has the right, at its option and at your expense, to enter the Store premises and take all actions necessary to de-identify the premises as a Which Wich Store
- Such costs incurred due to Which Wich’s de-identification efforts are expected to be paid by you immediately upon notice.
- Liquidated Damages: A substantial amount equal to the Store’s weekly average Gross Sales for the 104 weeks (two years) before termination or permanent closure (or if the Store has not been operating for 104 weeks, the average of the weeks of actual operation), multiplied by the Royalty Fee, multiplied by the lesser of 104 weeks (two years) or the number of weeks remaining in the Term of the Franchise Agreement
- You are expected to pay liquidated damages if the Franchise Agreement is terminated or if you permanently close the Store before the expiration of the Term of the Franchise Agreement.
- Liquidated damages begin from the earlier of the termination date or the date that you cease to operate the Store.
6 Steps on How to Buy a Which Wich Franchise
To fully qualify as Which Wich Franchisee, you need to be share the passion to deliver a superior guest experience and also possess the zeal to be a part of a successful brand. Here is a detailed step by step guide to help you through the process.
i. Research What The Company Has to Offer
Which Wich has a lot to offer franchisees, and they have outlined many important points of the investment on their website. Take some time to explore the site and be sure to check out the FAQs to review common questions the company often gets from prospective franchisees.
Some of the ways they support franchisees as they start a Which Wich franchise are outlined there. If you’re interested in becoming a franchisee or simply would like to learn more, fill out the simple contact form to get in touch.
ii. Contact Which Wich
Immediately you’ve filled out the contact form, the company will set up a time to talk. During these initial conversations, the company will get to know more about you and your background. They will also give you more information about Which Wich and what they are looking for in franchisees.
iii. Review FDD and Background Check
The company will provide you with a copy of their franchise disclosure document (FDD) to review on your own time. This is a dense legal document, so you are encouraged to review it with an attorney. You’ll have at least two weeks to read it thoroughly before you’re asked to sign a franchise agreement, so be sure to ask any questions you have.
At this point, the company also gets to know more about you and your background to be sure you’re qualified to start a franchise with Which Wich. Once all of the company’s formal research has been done and both parties agree to move forward, the company will present you with a franchise agreement to sign.
iv. Sign Franchise Agreement and Pay Initial Franchise Fee
At this point, you will have to sign your franchise agreement, indicating that you’ve read and agree to the terms outlined in the agreement and the FDD. At the same time, you’ll pay your initial franchise fee directly to the company.
v. Attend Initial Training
Which Wich will provide you and one of your trusted employees with comprehensive initial training at the company’s headquarters and there you’ll learn the ropes of how to operate one of the company’s franchises. You’ll be working with a team of experts on their franchise system, so this is a great opportunity to ask any questions you may have!
vi. Start Your Business
Finally, you’ll be ready to open your doors! The customers in your area will be happy that there’s a new Which Wich restaurant ready to serve them. Of course, the company’s support doesn’t end here – check out their training and support page to learn more about ongoing support.
Conclusion
Buying into a Which Wich Franchise cannot be described as a risk-free venture but when you can follow the rules and regulations that are drawn out by the franchisor; you will surely increase your chances of success.