Cousins Subs Franchise
Audited FinancialsRisk Score
Pending analysis
Investment Range
$464,700 - $1,164,500
Franchise Fee
$12,500
Total US Locations
94
Business Summary
Cousins Subs operates restaurants that offer a wide variety of made-to-order submarine sandwiches, other hot sandwiches, salads, and related food products and beverages. These restaurants provide options for both on-premises dining and off-premises consumption.
Corporate History
Cousins Subs Systems, Inc. was incorporated in November 1978 in Wisconsin, initially named Cousins Submarine Sandwich Shop Systems, Inc., before changing to its current name in March 1993. An affiliate, Cousins Submarines, Inc., has been operating Cousins Submarines restaurants since 1972. Cousins Subs Systems, Inc. has been offering franchises for Cousins Subs Shops since June 1979.
Financial Overview
Investment Range
$464,700 - $1,164,500
Franchise Fee (Low)
$12,500
Franchise Fee (High)
$25,000
Royalty %
6%
Marketing %
2%
Equipment Costs (Low)
$388,500
Equipment Costs (High)
$958,000
Working Capital
$35,000
Audited Financials
Yes
Offers Financing
No
Audit Opinion
Unqualified opinion
Financial Health Notes
Cousins Subs Systems, Inc. received an unqualified audit opinion for its financial statements for the fiscal years ending December 29, 2024, December 31, 2023, and December 25, 2022. However, the company reported net losses of $471,984 in 2024 and $285,932 in 2023, compared to a net income of $83,685 in 2022. Cousins Subs Systems, Inc. has significant joint and guaranteed debt with its affiliate, Cousins Submarines, Inc., and related real estate entities, totaling over $10 million in debt and guarantees for 2024. Despite these large obligations, the company states it does not expect to have to make payments on these notes, and no balances are currently past due.
Financing Details
Cousins Subs Systems, Inc. does not offer any direct or indirect financing to its franchisees. Additionally, Cousins Subs Systems, Inc. does not guarantee any franchisee's notes, leases, or other obligations.
Performance Metrics
Total US Locations
94
Franchised Units
36
Corporate Units
58
Avg Square Footage
2,200
Franchising Since
1979
Legal & Compliance Analysis
Recent Litigation
No
Bankruptcy
No
Litigation Summary
Cousins Subs Systems, Inc. has no litigation or legal disputes to report in Item 3 of its Franchise Disclosure Document.
Bankruptcy History
Cousins Subs Systems, Inc. has no bankruptcy history to report in Item 4 of its Franchise Disclosure Document.
Agreement Terms
Initial Term
10 years
Renewal Term
10 years
Renewal Conditions
To renew, Cousins Subs Systems, Inc. franchisees must have substantially complied with all provisions of their agreement throughout the entire term. They must maintain possession of the shop premises, bringing it into full compliance with current standards, or secure new approved premises. Franchisees need to provide written notice of their intent to renew at least 6 months, but no more than 12 months, before the agreement expires. All monetary obligations to Cousins Subs Systems, Inc. and its affiliates must be satisfied. Franchisees are required to execute Cousins Subs Systems, Inc.'s then-current franchise agreement, which may have different terms, including varying fees, and pay a renewal fee equal to 50% of the standard initial franchise fee. They also need to meet current qualification and training requirements and sign a general release of claims against Cousins Subs Systems, Inc. and its affiliates.
Training & Support Program
Franchisor Assistance
Cousins Subs Systems, Inc. provides comprehensive support to its franchisees. Before opening, Cousins Subs Systems, Inc. assists with site selection and approval, provides specifications for equipment, furniture, and signs, and leases and installs computer equipment, including the point-of-sale system. Franchisees (or their designated managers) receive a minimum of 25 business days of initial training at Cousins Subs Systems, Inc.'s corporate office or a designated facility in Wisconsin, which may also be held virtually. This training covers all operational aspects from financial controls to food preparation and marketing. For 4 days before opening and 10 days during the first 30 days of operation, a Cousins Subs Systems, Inc. representative will provide on-site assistance. After opening, Cousins Subs Systems, Inc. manages the technology fund for computer equipment maintenance and upgrades, provides an updated list of approved suppliers and products, and offers ongoing advice on pricing, product distribution, and quality standards. Cousins Subs Systems, Inc. representatives also conduct periodic visits to provide consultation and guidance, issuing written reports with suggested improvements. All franchisees contribute to an advertising and development fund, managed by Cousins Subs Systems, Inc., which funds national, regional, and local advertising campaigns through various media, including television, radio, and digital channels. Franchisees must also spend a percentage of their gross receipts on local advertising and may participate in cooperative advertising programs.
Initial Training Hours
240
Training Location
Cousins Subs Systems, Inc.'s corporate office in Menomonee Falls, Wisconsin, a designated training facility in Wisconsin, or any other certified training location designated by Cousins Subs Systems, Inc., or virtually.
Ongoing Support
After opening, Cousins Subs Systems, Inc. franchisees receive various forms of ongoing support. This includes maintenance, upgrades, and repairs for leased computer equipment, funded by a technology fund managed by Cousins Subs Systems, Inc. Cousins Subs Systems, Inc. provides a list of approved manufacturers, suppliers, and products, and coordinates product distribution. It regulates quality standards across all Cousins Subs Shops and advises franchisees on operational problems based on reports and inspections. Cousins Subs Systems, Inc. representatives make periodic visits to offer consultation, assistance, and guidance in all aspects of shop operation and management, providing written reports with suggested changes. Franchisees are required to attend an annual meeting (up to 3 days) and may be asked to attend training, marketing, and operations meetings 3-4 times per year.
Franchise Requirements
Ideal Candidate Profile
Cousins Subs is looking for individuals or entities who meet its general qualifications for operating a restaurant. While personal, full-time supervision is not strictly required, the business must be overseen by the franchisee or two full-time designated managers who have successfully completed Cousins' operator certification training and food safety certification. Cousins Subs particularly favors candidates with prior management experience within affiliated or existing Cousins Subs Shops, offering them reduced initial franchise fees and other favorable terms due to their proven experience. Franchisees must also demonstrate an understanding of and willingness to comply with the extensive federal, state, and local regulations governing the restaurant industry.
Industry Experience Required
No
Management Experience Required
No
Sales Experience Required
No
Technical Skills Required
No
Operational Details
Location Type
retail
Owner Participation
supervisory
Territory Type
limited
Territory Size Requirements
Cousins Subs Systems, Inc. grants franchisees the right to operate a Cousins Subs Shop at a specific location. For a single shop, a protected territory typically consists of a 1-mile radius around the premises, except for non-traditional venues or shops in a central business district, where the 1-mile radius protection does not apply. For multi-unit development, the Multi-Unit Areas consist of a 1-mile radius around each of the intersections designated for shop development.
Staffing Notes
Cousins Subs Systems, Inc. requires that each shop be under the direct, on-premises supervision of the franchisee or two full-time designated managers. These designated managers must have successfully completed Cousins Subs Systems, Inc.'s operator certification requirements. Cousins Subs Systems, Inc. makes training available for all designated managers. Owners are responsible for faithfully and diligently performing their obligations, whether or not they act as managers, and cannot engage in conflicting business activities. The Confidential Operations Manual contains further details on staffing, including a Team Member Handbook, policies on appearance, meals, drugs and alcohol, recruitment, interviewing, orientation and training, Person-In-Charge responsibilities, food safety certification, and certified trainer job descriptions.