News

Togo's ends 2013 with 48 franchise agreements

February 3, 2014

Togo's Eateries Inc. announced today it signed 48 new franchise agreements in 2013, to develop new restaurants throughout Colorado, Arizona, California, Oregon and Utah, as part of the sandwich chain's plan to grow its footprint throughout the West, according to a company press release.

"Our business has experienced tremendous success over the past year and is on track to open 25 new restaurants in 2014," said Tony Gioia, chairman and CEO of Togo's Holdings. "With our strong sales, low start-up costs and latest multi-unit development incentive, Togo's is an attractive investment opportunity for both new franchise owners and multi-unit operators. There truly has never been a better time to become a Togo's franchisee."

Togo's plans to develop additional units in Colorado Springs and Boise, Idaho; Salt Lake City, Utah; Portland, Ore., and Phoenix, while seeking franchisees to open restaurants in new areas such as Seattle and Tacoma, Wash.; Denver, Tucson, Ariz., and additional markets in California.

Togo's, which has more than 325 locations open and under development throughout the West, has experienced four consecutive years of same-store sales increases. Last year, the company launched a multi-unit franchise development incentive program to drive expansion in key growth markets, according to the release. Both new and existing franchisees who sign a new agreement for three or more locations will receive reduced royalty fees for the first two years for each new restaurant that is developed in Washington, Oregon, Idaho, Utah, Colorado, Nevada and Arizona. Additionally, franchisees will benefit from $10 million for remodels and transfers, as well as $5 million to build new restaurants.

At Togo's, traditional restaurants experienced average unit sales in excess of $633,000, with 50 percent averaging over $799,000, and 25 percent averaging over $930,000, according to the release. To become a part of the Togo's team and be your own boss, candidates should possess liquidity of $150,000 for a single restaurant and a net worth of $300,000. Area developers looking to develop three or more restaurants should have liquidity of $450,000 and net worth of $900,000. Special incentives are available for qualified franchisees interested in opening three or more restaurants, according to the release.

Read more about growth.