Tubby's Franchise Questions & Answers

Q: What is the Initial Franchise fee, if any?
A: $20,000 for Traditional store (strip center or freestanding building) $17,500 for Non-Traditional store (gas station or food court)

Q: How much are the royalty and advertising fees?
A: 6% royalty fee, 4% advertising fee = 10% total. The first year the store is opened new franchisees receive a letter from the President of Tubby's giving you a percentage break on your royalty fee the first and second year. The first year you will pay a 4% royalty fee and the second year increase to 5%. The third year and thereafter will be the normal 6%. The advertising fee will also be 4%.
Q: Is there any training involved? How long and where?
A: Yes. A minimum of 240 hours which is roughly 6 weeks at one of Tubby's company stores located in Clinton Township or Novi, Michigan.
Q: How much are the estimated build out fees?
A: A Traditional store will cost approximately $160,000 (+ or - $5,000). A Non-Traditional store can cost approximately $30,000 to $90,000
Q: Whom would we use for a contractor? Does Tubby's have one or can we use our own?
A: You can use our contractor or if you have friends or family that are licensed and insured contractors you can use them and we will provide the specs they need.
Q: Do we purchase the equipment through Tubby's?
A: Yes. However, you are welcome to shop around for equipment, but you need to have the same model numbers.
Q: Where do we get our products or produce?
A: From our distribution company called SUBperior Distribution System or from approved suppliers.
Q: How much square footage is required?
A: Traditional square footage needed is 1,200 to 1,500 sq. ft. You cannot go under 1,000 sq. ft. and no more then 1,900 sq. ft. Non-Traditional 800 sq. ft. to 1,500 sq. ft.
Q: How long is the agreement/contract period?
A: 10 years with (2) 5 year renewal options.
Q: Does Tubby's provide financing?
A: No, but we do offer 3 rd party financing or you can use your own lender.
Q: How long does it take to become a Tubby's franchisee?
A: It depends on how fast you want to move the process along. On average it can take approx. 30 days or less from the initial inquiry. Once an agreement is signed it takes approx. 90-120 days to open a brand new location and approx. 30 days to buy an existing Tubby's franchise.
Q: Does Tubby's provide assistance with site selection?
A: We are committed to opening new sub shops in the best locations with qualified operators. Although, our franchisees are responsible for leading much of the search, we are involved in assisting you and will thoroughly evaluate every location.
Q: What other types of agreements does Tubby's offer?
A: Development agent agreements and Multi Unit Agreements besides the Single Unit Agreements.