Cousins Subs Franchise AUV, Costs & Profits (2023)
Cousins Subs franchise-owned restaurants have been on the decline for a few years now: from 130 franchises 10 years ago, there are only 50 franchised restaurants left in 2023. Despite the decrease in the numbers of restaurants country-wide, is Cousins Subs a good investment from a financial perspective for franchisees?
One franchise costs franchisees an average initial investment of $545,000, lower than similar sandwich franchises. What about profits? One restaurant reaches an average 14% EBITDA margin, slightly lower than competition.
In this article we’re looking at Cousins Subs and its Franchise Disclosure Document to find out how much it (really) costs, and how much profits you can realistically make as a franchisee. Let’s dive in!
Key stats
| Franchise fee | $25,000 |
| Royalty fee | 6.0% |
| Marketing fee | 5.0% |
| Investment (mid-point) | $545,000 |
| Average sales | $744,000 |
| Sales to investment ratio | 1.4x |
| Payback period | 10 years |
| Minimum net worth | $300,000 |
| Minimum liquid capital | $100,000 |
Cousins Subs Franchise Business Plan
All the stats: startup costs, profits, breakeven, etc.
5-year financial projections built with the FDD
Excellent 4.8/5 based on 70 reviews
About Cousins Subs
Headquarteredd in Menomonee Falls, Wisconsin, Cousins Subs is a sandwich shop chain that was founded in 1972 by Bill Specht and his cousin Jim Sheppard.
Cousins Subs is known for its unique bread, which is baked fresh daily and has a slightly crispy crust. The chain offers a variety of sandwich options, including traditional deli-style subs, grilled subs, and salads.
The franchise started franchising in 1986. Yet, the chain’s footprint has decreased significantly over the past few years: from 130 restaurants 10 years ago, there are (only) 90 restaurants left today across Wisconsin, Illinois, and Indiana. How much does a Cousins Subs franchise cost?
How much does a Cousins Subs franchise cost?
You would need to invest around $545,000 to open a new Cousins Subs franchised restaurant.
Startup costs
Here’s the full breakdown of costs:
| Type of Expenditure | Low | High |
|---|---|---|
| Initial Franchise Fee | $25,000 | $25,000 |
| Formation Costs | $228,500 | $681,000 |
| Initial Marketing | $10,000 | $10,000 |
| Operating Costs | $28,700 | $81,500 |
| Total | $292,200 | $797,500 |
What is the franchise fee?
The initial franchise fee for a Cousins Subs franchise is $25,000
In addition to the initial franchise fee, you must pay to the franchisor a royalty fee of 6.0% of revenues, as well as a variable marketing fee of 5.0% of revenues.
What’s the AUV of a Cousins Subs franchise?
A Cousins Subs franchised shop generates $744,000 in revenue per year (“Average Unit Volume”).
How profitable is a Cousins Subs franchise?
On average, a Cousins Subs franchise makes $118,000 in profits per year. This corresponds to a 14% EBITDA margin.
| Profit-and-loss | Amount ($) | As % of sales |
|---|---|---|
| Net Sales | $852,364 | 100% |
| COGS | $(227,282) | 27% |
| Gross Profit | $625,082 | 73% |
| Labor | $(245,216) | 29% |
| Occupancy | $(50,416) | 6% |
| Telephone & Utilities | $(19,873) | 2% |
| Advertising | $(41,305) | 5% |
| Employee Benifits | $(15,093) | 2% |
| Franchise Fees | $(51,142) | 6% |
| Other Opex | $(84,067) | 10% |
| EBITDA | $117,970 | 14% |
Cousins Subs Franchise Business Plan
All the stats: startup costs, profits, breakeven, etc.
5-year financial projections built with the FDD
Excellent 4.8/5 based on 70 reviews
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