- 2023 Franchise 500 Rank
N/R Not ranked last year
- Initial investment
$239K - $478K
- Units as of 2020
184 22% over 3 years
Togo’s is a franchise committed to delivering customers a big sandwich with great flavor stuffed with fresh ingredients and typically made just the way you like it. Togo’s has been around since the 1971, began franchising in 1977, and has many locations across the United States.
Why You May Want to Open a Togo’s Franchise
Even though Togo’s has been around for more than 50 years, the market is still fairly confined to the western United States. This means that there may be lots of location opportunities for franchisees. Ideally, you will find yourself opening an exciting new franchise in your area. Your customers may be driven to your door by curiosity and leave as lifelong customers.
Togo’s knows that there is a difference between being trained and being trained well. That is why the company has worked hard to bring the type of training found in larger companies to their brand. Having your team trained well will help things run smoothly and help bring customers back again and again.
What Might Make Togo’s a Good Choice?
Innovation is always important. Togo’s is dedicated to finding new ways to do things. This usually demands some creativity from the franchisees. Togo’s has been innovative in developing restaurants with a modern look, POS kiosks, and third-party delivery partnerships. The kiosks and delivery partnerships may help to expand your customer base.
Togo’s is usually exceptionally picky about the products they offer to customers. When customers order a Togo’s sandwich, they typically know they will be getting something good. This is because Togo’s strives to buy only the best meats, cheeses, vegetables, and other ingredients for their delicious sandwiches.
To be part of the Togo’s team, you should make sure you're financially ready for an initial investment made up of a franchise fee and other startup costs. In addition, you should prepare yourself for ongoing fees that will include advertising, royalty, and renewal fees. Franchisees will also need to meet the company's set net worth and liquid capital requirements. It may be a good idea to talk to an attorney or financial advisor as you go through the process of deciding whether you have the necessary funds to open a Togo’s franchise.
How to Open a Togo’s Franchise
To get the process started, you may need to submit a franchise inquiry form. After you submit this information, a Togo’s representative may contact you. Together you might discuss the Togo’s franchise business, your experience and personality, the location you would like to open, and more.
The Togo’s representative may ask you to fill out a formal application and attend a discovery day. On discovery day, you may get to see how the company runs in real-time and meet other franchisees. You may also be able to have more questions answered and get a good feel for the franchise.
If your application is approved, you will generally review and sign a franchise agreement. Once that is done, construction will typically begin on your Togo’s location. You may start training and planning your grand opening with the Togo’s team as you prepare to welcome hungry guests.
|Franchising Since||1977 (46 years)|
|# of employees at HQ||30|
This company is offering new franchisees throughout the US.
|# of Units||184 (as of 2020)|
Information for Franchisees
Here's what you need to know if you're interested in opening a Togo's franchise.
Financial Requirements & Ongoing Fees
Here's what you can expect to spend to start the business and what ongoing fees the franchisor charges throughout the life of the business.
Initial Franchise Fee
Definition: The initial fee paid to a franchisor to join their system
What you need to know: Found in Item 5 of the FDD, this may be a flat fee, or may vary based on territory size, experience, or other factors.The franchise fee is an up-front (one-time) cost that a new franchisee pays to the franchisor. This fee is usually due at the signing of the franchise agreement and covers the right to use the franchisor's trademarks, name, and related business systems.
Definition: The total amount necessary to begin operation of the franchise
What you need to know: The initial investment includes the franchise fee, along with other startup expenses such as real estate, equipment, supplies, business licenses, and working capital. This is outlined in a chart in Item 7 of the FDD, showing a range of possible costs from low to high.
|$238,500 - $477,700|
Net Worth Requirement
Definition: The minimum net worth you must have in order to qualify to become a franchisee of this company
What you need to know: Net worth is the value of a person's assets minus liabilities. Assets include cash, stocks, retirement accounts, and real estate. Liabilities include items like mortgages, car payments, and credit card debt.
|$300,000 - $500,000|
Definition: The minimum liquid capital you must have available in order to qualify to become a franchisee of this company.
|$150,000 - $300,000|
Definition: A ongoing fee paid to the franchisor on a regular basis.
What you need to know: Most franchisors require franchisees to pay an ongoing royalty fee, which is detailed in Item 6 of the FDD. This fee is typically a percentage of weekly or monthly gross sales, but may also be a flat weekly, monthly, or annual fee.
Ad Royalty Fee
Definition: An going fee paid to the franchisor on a regular basis to support advertising or marketing efforts.
What you need to know: This may also be called advertising fee, marketing fee, brand fund fee, and more, but the basic purpose is the same-- to support promotion of the brand systemwide. As with the royalty fee, it is detailed in Item 6 of the FDD, and can be a percentage of weekly or monthly gross sales or a weekly, monthly, or annual fee.
Term of Agreement
Definition: The length of time your franchise agreement will last.
What you need to know: Franchise terms are typically anywhere from 5 to 20 years in length, but are sometimes instead dependent on factors such as the term of your lease. Once your term is up, you may have the option to renew your agreement, typically for a smaller fee than the original franchise fee.
|Is franchise term renewable?||Yes|
Some franchisors offer in-house financing, while others have relationships with third-party financing sources to which they refer qualified franchisees.
|Third Party Financing||Togo's has relationships with third-party sources which offer financing to cover the following: franchise fee, startup costs, equipment, inventory, accounts receivable, payroll|
Training & Support Offered
Franchisors offer initial training programs and a variety of ongoing support options to help franchisees run their businesses.
|On-The-Job Training||100 hours|
|Classroom Training||40 hours|
Meetings & Conventions
Security & Safety Procedures
Franchisee Intranet Platform
Additional details about running this franchise.
|Is absentee ownership allowed?||No|
Can this franchise be run from home/mobile unit?
Definition: The business can be run from your home and/or a vehicle, and it is not necessary to have a retail facility, office space, or warehouse.
Can this franchise be run part time?
Definition: This business can be run by the owner on a part-time basis (less than 40 hours per week) and/or as a side business; it is not necessary for the business to be open/run full-time.
|# of employees required to run||14-25|
Are exclusive territories available?
Definition: An exclusive territory is a fixed area in which you are given the right to operate and in which no other units of the same franchise may be opened.
What you need to know: Territory size may be based on factors such as radius, population size, zip codes, and more. Details can be found in Item 12 of the FDD.
Interested in ownership opportunities like Togo's? Request a free consultation with a Franchise Advisor now.
Franchise 500 Ranking History
Compare where Togo's landed on this year's Franchise 500 Ranking versus previous years.
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