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What Is A Franchise?

A franchise is not a product that is sold like a car or a house. The potential franchisee makes an application, and when the application is accepted by the franchisor, the franchise is granted, or awarded. The franchisee is purchasing the right to participate in an established business concept, thus eliminating the need for costly market research, development, copyright and legal services which are associated with independent start-up businesses.

Franchising is a business strategy that requires a close alliance between franchisors and franchisees working together toward semi-independent but mutually beneficial goals. In this alliance there are non-interchangeable roles. The franchisor formulates and guides a system-wide marketing plan, while the franchisee carries out that plan at a local level.

To become a Submarina® franchisee, you must qualify. You must meet our standards and go though our process and agree to follow our system. Typically, companies spend much of the early years of their business getting all the “bugs” out of their system before the business is completely successful, and offered as a franchise. Therefore, the franchisor does not want the franchisee to encounter the mistakes that they made in the formative years. Herein lies the underlying formula for franchising, and the reason that franchise operations are so successful; the business model has been proven, and when duplicated efficiently, will certainly produce success.

Franchising, as a business strategy, depends on a symbiotic relationship between a franchisor and franchisee. One cannot survive and prosper without the other. That is why the success of franchisors and their franchisees must be based on a system-wide concept. No one has ever been able to disprove the axiom that a whole cannot be greater than the sum of its parts. Conversely, no part of the whole can be greater than the overall entity.

Since we are awarding a franchise, you will need to know how a franchisee is expected to perform and what our obligations are to you. We will spell out the exact terms of the relationship in our Franchise Disclosure Document (FDD) and the Franchise Agreement. These documents will be presented to you once your application is received.

The SUBMARINA® Franchise Program

Once you qualify as a franchisee and become a licensee of the Submarina franchise system, we put our efforts into teaching you the Submarina system. Since the success of your franchise is mainly dependent on how well you follow our system, we are committed to you every step of the way. Our effective system of operation will give you the edge necessary to create a thriving business. The Submarina franchise program provides you the following support and assistance:

Financing
Submarina is able to introduce you to financing sources that are familiar with our operations and have worked with us in the past. This includes equipment leasing companies, SBA (small business administration) approved bank lenders and other private lenders.

Site Selection and Lease Negotiations
We provide professional assistance in helping to locate and identify suitable retail locations for the new franchise location. This process takes considerable effort and expertise and is best handled by the experts, who will have your best interests at heart throughout the process. It has been said that the three most important ingredients of a successful business are “location, location, location.” Add to this formula proficiency in operating the Submarina system and you have a proven winner.

Restaurant Design and Construction
Complete sets of custom floor plans are developed for each location. Proper customer traffic flow and seating are laid out. Efficient work areas and backroom storage areas are created. Other key design elements are implemented into your restaurant to give it that unique Submarina look. With these plans, we will coordinate with our national design-layout contractor, Fitch. This firm is a nationally recognized contractor that specializes in franchise retail build-outs. They will obtain all permits and licenses and perform construction of your restaurant.

Training and Operations Manual
You may not start out as an expert, but after reading the Submarina training manual and completing our two-week training program, you are on your way to becoming one. Since we don’t require that you have any related experience, we have written the operations manual and designed the training program with that in mind. You start by reading and learning from the operations manual. Soon after a construction schedule has been set for your restaurant, the formal training program will begin. During the first two weeks, you will get hands-on training at our designated training center restaurant, as well as valuable classroom training. We will teach you all aspects of management, including customer relations, hiring, training, and motivating and evaluating employees. You will learn opening procedures, sandwich preparation, equipment operation, point-of-sale and computer usage and closing procedures. Through all of this, you will develop product knowledge. In the classroom, you will learn how to use the inventory control system, food cost monitoring and other tracking forms, as well as how to meet scheduling and payroll targets. Lastly, you will learn about marketing programs, how to gauge their effectiveness and their importance.

Marketing Programs
Professionally designed advertising materials are provided to franchisees. Various types of print advertisements and in-store displays enhance the image and exposure of your restaurant. You will learn the most cost-effective ways of bringing in new customers and how to keep them coming back. We will help you implement a comprehensive Grand Opening promotional plan to start your restaurant in the right direction. Marketing allowances, or rebates, which manufacturers pay to Submarina are contributed to the Marketing and Promotional Fund and used for further promotion of all Submarina restaurants.

Group Purchasing Power and Proprietary Products
In all possible situations, Submarina restaurants purchase the same products. This group purchasing makes possible quantity discounts from manufacturers and distributors. All savings are passed directly to the franchisees. Franchisees are required to purchase certain Submarina proprietary products. Paper goods with the Submarina logo and specially formulated food products are examples. These items assure the uniqueness, uniformity and quality of the Submarina system.

New Product Development
Submarina is a flexible company. Since technology and customer trends are ever changing, we are constantly seeking out new and improved products, machinery and methods of operations. If these items pass our stringent screening and testing methods, they are added to the Submarina Operation Manual and implemented in the system.

Quality Control and Ongoing Support
Quality and consistency are trademarks by which Submarina has come to be known. Customer satisfaction will be achieved through the use of high quality products and by applying Submarina standards. Franchise Consultants visit all restaurants to ensure these standards are maintained and to help improve operations. We will spend time analyzing the sales and expenses of your franchise and compare it to other restaurants. If necessary, suggestions on how to attain the company standards will be made.

Development Rights Program
This form of franchising allows for ownership of multiple locations within a defined geographic area.