Risk Score
Pending analysis
Investment Range
$365,000 - $1,067,500
Franchise Fee
$40,000
Min Cash Required
$40,000
Total US Locations
29
Business Summary
Miami Grill® operates fast-casual restaurants that serve quality food prepared fresh and cooked to order. Miami Grill® Restaurants offer a diverse menu including submarine sandwiches, pita sandwiches, gyros, cheese steaks, wings, hot dogs, fish, burgers, chicken, desserts, ice cream, and beverages. They provide dine-in, carry-out, drive-thru, delivery, curbside, mobile, and kiosk ordering options, as well as off-site catering. Many Miami Grill® locations also sell beer, wine, and liquor. In addition to the traditional restaurant model, Miami Grill® also offers an 'Express' model which is a smaller footprint without a dining room, focusing on drive-thru and delivery services with a streamlined menu.
Corporate History
Miami Grill Franchising Corporation, initially named Miami Subs Franchising Corporation, was incorporated in Florida on October 10, 2007. The company changed its name to Miami Grill Franchising Corporation on March 28, 2018. Its brand history traces back to a predecessor, Konstantinos "Gus" Boulis, who operated "Mr. Submarine" restaurants from 1983 to 1991 and "Miami Subs" restaurants starting in December 1989. Miami Subs Corporation (MSC), the franchisor's parent company, was formed in 1990. In 2018, the company transitioned all its brands from Miami Subs to Miami Grill. An affiliate also acquired Salad Creations in 2016, which continues to offer franchises.
Financial Overview
Investment Range
$365,000 - $1,067,500
Franchise Fee (Low)
$40,000
Franchise Fee (High)
$55,000
Minimum Cash Required
$40,000
Royalty %
6%
Marketing %
3%
Equipment Costs (Low)
$250,000
Equipment Costs (High)
$770,000
Working Capital
$70,000
Audited Financials
Yes
Offers Financing
No
Audit Opinion
Unqualified opinion
Financial Health Notes
Miami Grill Franchising Corporation's parent company, Miami Subs Corporation, provides audited financial statements that received an unqualified opinion from the independent auditor. However, the 2023 financial statements indicate a net loss of $202,924, a decrease from a net income of $968,702 in 2022. Cash and cash equivalents also decreased from $1.8 million in 2022 to $1.2 million in 2023, with net cash used by operating activities totaling $399,152 in 2023, compared to positive cash flow from operations in 2022. The company has federal and state net operating loss carryforwards of approximately $322,000, and management believes it will realize the benefit of its deferred tax assets.
Financing Details
Miami Grill Franchising Corporation does not offer any direct or indirect financing to its franchisees. Additionally, Miami Grill Franchising Corporation does not guarantee any notes, leases, or other financial obligations incurred by its franchisees.
Performance Metrics
Total US Locations
29
Franchised Units
28
Corporate Units
1
Avg Square Footage
2,750
Franchising Since
1990
Legal & Compliance Analysis
Recent Litigation
No
Bankruptcy
No
Litigation Count
1
Litigation Summary
Miami Grill Franchising Corporation has disclosed one legal matter. In 2016, the Commissioner of Securities in Hawaii alleged that Miami Grill Franchising Corporation (then Miami Subs Franchising Corp.) sold two franchises without properly filing an offering circular. Miami Grill Franchising Corporation agreed it had violated the Franchise Investment Law. Prior to the consent order, one franchisee rejected a rescission offer. Upon signing the consent order, Miami Grill Franchising Corporation paid $5,000 in investigation costs and agreed to comply with all filing and disclosure requirements in Hawaii before selling more franchises in that state. No other litigation is required to be disclosed for Miami Grill Franchising Corporation.
Bankruptcy History
Miami Grill Franchising Corporation has no bankruptcy history to report.
Agreement Terms
Initial Term
20 years
Renewal Conditions
To renew their franchise agreement, Miami Grill® franchisees must provide timely notice of their intent to acquire a successor franchise. they need to be in substantial compliance with their current agreement, maintain possession of their franchised location, and agree to upgrade it or secure an approved substitute location. Franchisees are also required to sign a general release and Miami Grill®'s then-current form of Franchise Agreement, which may have terms and conditions different from their original agreement. Finally, they must pay a renewal fee as detailed in Item 6.
Training & Support Program
Franchisor Assistance
Miami Grill® provides extensive assistance to its franchisees. Before opening, Miami Grill® offers site selection counseling, guidance on lease terms, and on-site evaluations for proposed locations. Franchisees receive a confidential Operating Manual and an initial training program lasting from six weeks to three months for their Operating Principal and at least three managers. Miami Grill® also furnishes written specifications and a list of approved suppliers, reviews construction plans, conducts final inspections, and provides opening assistance. For multi-unit developers, assistance includes granting development rights for an exclusive area, reviewing potential sites, helping determine restaurant layouts, and reviewing build-out plans. After opening, Miami Grill® offers ongoing advice and consultation on various operational aspects, including restaurant design, management, food preparation, and sales promotion, delivered through site visits, materials, meetings, seminars, and telephone communications. They also conduct periodic inspections to ensure compliance with system standards and manage national and regional advertising funds, as well as approving local advertising materials.
Initial Training Hours
410
Training Location
Franchisor headquarters in Boca Raton, Florida and a Miami Grill Restaurant
Ongoing Support
After opening, Miami Grill® provides ongoing advice and consultation to franchisees on the operation of their restaurants, including restaurant design, management, food and beverage preparation, sales promotion, and service concepts. This support is delivered through visits from representatives, printed materials, meetings, seminars, and telephone communications. Miami Grill® also conducts periodic inspections of the restaurants to ensure compliance with system standards. Additionally, the franchisor manages and allocates funds from the National Advertising Fund and any established Regional Advertising Funds for advertising and promotional purposes, and reviews and approves local advertising materials used by franchisees.
Franchise Requirements
Industry Experience Required
No
Management Experience Required
No
Sales Experience Required
No
Technical Skills Required
No
Operational Details
Location Type
Retail
Owner Participation
Hands-On
Territory Type
Limited
Territory Size Requirements
Miami Grill® grants a Protected Area for a traditional restaurant, which is typically a 1.5-mile radius, dependent on local geography, natural barriers, and population density. For multi-unit developers, the Exclusive Area is usually defined by municipal or county boundaries, or as a specified trade area, with the exact size varying based on local market conditions and the number of restaurants planned for development.
Staffing Notes
Miami Grill® restaurants are required to have at least three Certified Managers on staff at all times, with one Certified Manager providing direct, on-premises supervision. If the number of Certified Managers falls below three, the franchisee has 60 days to hire and certify a new manager. Franchisees are solely responsible for all hiring, firing, training, compensation, and other employment decisions for their staff, who are considered their employees, not Miami Grill®'s. Franchisees must also establish an employee training program that meets Miami Grill®'s standards.