Which Wich is one of the most popular sandwich and salad fast casual restaurants in the United States, probably next to Subway. In this niche industry and with little competition, you might be wondering about Which Wich’s franchise system and if it’s worth all the effort.
With a relatively low entry point to their franchise system, Which Wich stands as an attractive opportunity to many entrepreneurs.
In this article, we will discuss Which Wich’s franchise system, costs, requirements, and what they offer to entrepreneurs. You will have a broad understanding of their system and whether you should own one.
About Which Wich And Which Wich History
Which Wich Superior Sandwiches, also known as Which Wich, is an American fast-food franchise restaurant chain with a specialization in sandwiches and salads. The company’s unique stand comes from its customizable sandwiches, where you can choose from three sizes and 60 different topping options.
They also operate outside of the United States in countries like the United Kingdom, Oman, Qatar, and Saudi Arabia.
Now, they have over 160 stores across 5 countries, and they were chosen as one of the fastest-growing franchises with 50 stores or fewer in 2016.
Their franchise system is also highly established and aims to make the entrepreneurs successful.
Franchise Model Table
| Cost Or Fees | Amount |
|---|---|
| Initial Investment | $253,500-$742,250 |
| Franchise | YES |
| Franchising Since | 2005 |
| Franchise-Fee | $25,000-$30,000 |
| Royalty-Fee | 6% |
| Liquidity | $150,000 |
| Estimated Outlets | 168 |
How Much Does It Cost To Open A Which Wich Franchise?
The total cost to open a Which Wich franchise typically varies between $253,500 and $742,250.
This expected investment includes the franchise fee, which is between $25,000 and $30,000, and all other related startup costs.
Based on your individual situation, the total cost might be higher or lower than the mentioned expected costs.
Franchise Requirements
On the financial side, you need a minimum net worth of $250,000 and a minimum liquidity of $150,000. These are the only two obligatory requirements to have to apply to be a franchisee.
On paper, Which Wich doesn’t require franchisees to have industry experience or anything similar. However, having business acumen, business management experience, or something similar will drastically help your chances of getting approval.
Which Wich Franchisor Profit & Revenue
There is no public information about Which Wich’s profit and revenue numbers as a company. Since they are not a public company, they are not obligated to share their financials. However, there are some reports online that show us an estimation of the brand’s total annual revenue.
These reports suggest that Which Wich had a total revenue of $486 million in 2021, as per the latest available data.
How Much Does a Which Wich Franchise Owner Make?
The average overall annual sales per franchised Which Wich store is around $401,000. This is the latest number, post-COVID, after the company saw an almost 50% decrease in annual overall sales but managed to jump back to normal numbers.
If we assume a profit margin of 15% as per the industry standards, then we can estimate that a Which Wich franchise owner makes estimated annual net profits of $60,150 on average.
| Financial Overview | Percentage of Revenue | Amount ($) |
|---|---|---|
| Individual Franchise Annual Revenue | 100% | 401000.00 |
| Rent | 10.63% | (42606.25) |
| Insurance | 5.31% | (21303.13) |
| Salaries | 21.25% | (85212.50) |
| Franchise Royalty Fees | 5.31% | (21303.13) |
| Utilities | 2.13% | (8521.25) |
| Cost of Goods Sold (COGS) | 26.56% | (106515.63) |
| Labor (Variable) | 13.81% | (55388.13) |
| Total (Expenses) | 85.00% | (340850.00) |
| Net Profit | 15.00% | 60150.00 |
Note: The displayed expenses are estimates based on industry averages and standard costs. Actual expenses may vary due to factors like location, business size, and market conditions. We recommend conducting detailed research or consulting with a financial advisor for a tailored financial analysis.
Payback Period Of Which Wich
With an investment of $742,250 and an estimated 15% profit on the average net sales, the yearly profit would be $60,150.
So, to find out how long it will take to earn back the initial investment:
Payback Period = Investment / Yearly Profit = $742,250 / $60,150 =12.3 years
Based on these figures, it will take approximately 12 years to pay back the initial investment for Which Wich. This time period could be longer or shorter depending on your sales, revenue, and profit figures.
Failure Rate Of Which Wich Franchise
Franchised Outlets:
| Year | Outlets at the Start of the Year | Outlets at the End of the Year | Net Change |
|---|---|---|---|
| 2020 | 355 | 288 | -67 |
| 2021 | 288 | 262 | -26 |
| 2022 | 262 | 220 | -42 |
For the Franchised outlets:
- In 2020, the failure rate was (67)/355×100≈18.87%
- In 2021, the failure rate was (26)/288×100≈9.03%
- In 2022, the failure rate was (42)/262×100≈16.03%
According to the above-mentioned data, we can see that the franchised outlets for Which Wich declined from 2020 to 2022, showing a failure rate between 18.87% and 16.03%.
This implies that it is not the best time to invest in the franchise as there are more number of closures than the new openings.
Training and Support Of Which Wich
Every franchisee must participate in a two-week initial training program in Dallas. This training program aims to give the franchisee an in-depth understanding of the Which Wich brand and the operations of the store.
As part of their training and support package, they also offer digital training, on-site expertise post-opening, and provide business consultants. It aims to turn your franchise into a profitable venture as soon as possible by being there with you when you open your store. They also provide exceptional marketing support to field marketing managers.
Terms of Agreement and Renewal
The initial term of the franchise agreement is for ten years. A renewal is possible if both sides are in good standing and the franchisor approves the renewal. The renewal is for two consecutive five-year terms.
Obligations and Restrictions
Ideally, the franchisee is obligated to participate in the day-to-day operations of the business full-time. However, Which Wich gives the opportunity to come to an agreement with the franchisee and find the best solution. Y
ou might be able to run the store part-time or designate a manager who will oversee the operations.
The franchisee must also sell all items that the Which Wich requires them to. Also, all the items served on the menu must be served in the method or manner that Which Wich asks you to, which Wich can also establish price requirements and limits to the items on the menu.
Financial Assistance
Which Wich doesn’t have direct financial assistance, but they might offer indirect financial assistance. They have relationships with third-party lenders that they might direct the franchisees to.
These lenders are generally lenders that other franchisees have used in the past. They generally help with construction, SBA loans, or equipment leasing. They might cover all or just some part of it, depending on your financial situation.
Which Wich Comparison
| Name | Franchise Fee | Royalty Fee | Initial Investment |
|---|---|---|---|
| Jersey Mike’s | $18,500 | 6.5% | $144,668 – $786,233 |
| Subway | $10,000-$15,000 | 12.5% | $182,550-$506,900 |
| Which Wich | $25,000-$30,000 | 6% | $253,500-$742,250 |
Conclusion
Which Wich is one of the fastest-growing fast-casual restaurant chains specializing in sandwiches and salads.
They have over 160 stores across five countries, and they offer a popular brand name to entrepreneurs who want to be a franchise with them.
The expected gross revenue from a franchised store is around $401,000, which is not high but also not low.
Considering the associated costs of opening a store, there is a high likelihood that you will recoup your investment in no time. This shows Which Wich as a good business to own and be a franchise with.
FAQs
How much Is the franchise fee for Which Wich?
The franchise fee for one Which Wich outlet varies between $25,000 and $30,000 depending on your situation. You pay this fee when you sign the franchise agreement and in a lump sum.
Are there any discounts available for franchise fees or royalty fees?
There might be veteran discounts available. There are no other discounts available if it’s your first Which Wich franchise store. For stores more than one, you might be able to get a discount.
Is Which Wich a franchise?
Yes, Which Wich is a typical franchise with an established system and fees.
Who owns Which Wich?
Which Wich was founded by Jeff Sinelli, CEO of Genghis Grill. He is also the CEO of Which Wich.
How many locations does Which Wich has?
Which Wich began with one location in Downtown Dallas. It has currently 227 locations operating in the United States.
Where is Which Wich headquartered?
The headquarters of Which Wich is located in Downtown Dallas, Texas.
Sources
https://www.whichwichfranchising.com/faqs/
https://www.whichwichfranchising.com/why-which-wich/initial-investment/
https://www.franchimp.com/?page=pdf&f=107519_2023.pdf