From the filings
Subway vs Jersey Mike's Subs
Two franchise brands, side by side, from their filings.
Subway is the larger system.
Jersey Mike's Subs is adding franchised locations faster.
At Subway, headquarters controls purchasing; at Jersey Mike's Subs, owners buy from an approved list.
Locations: 18,773 at Subway, 3,227 at Jersey Mike's Subs.
Franchised location growth: -3.7% at Subway, +8.3% at Jersey Mike's Subs.
Purchasing: Franchisor controlled at Subway, Approved supplier list at Jersey Mike's Subs.
Who decides, side by side
Subway
Headquarters picks the POS, the card processor, supplies and the loyalty program. Headquarters sets standards for the accounting system.
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Headquarters designates the POS every location uses.
“SubwayPOS® is the required POS software for all restaurants.”
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Payments is required through Adyen.
“Until we provide you with notice that only the Ingenico payment terminal (used for processing through FreedomPay) is required, you must obtain, use and pay all fees associated with both the P400 payment terminal (used for processing through Adyen) and the Ingenico payment terminal.”
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Headquarters designates where supplies come from.
“You must use only approved suppliers for third party delivery services.”
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Owners keep books to headquarters’ requirements.
“You shall establish and maintain a bookkeeping, accounting and record keeping system conforming to the requirements prescribed by us”
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Every location runs headquarters’ loyalty program.
“You must also accept credit card and debit card payments as well as contactless and mobile device payments and participate in our gift card, loyalty, rewards and related programs at your expense.”
Jersey Mike's Subs
Headquarters picks the POS, the card processor and the loyalty program. Supplies come from an approved list. Headquarters sets standards for the accounting system.
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POS is required through ReSource Point of Sale, $7,500 per register.
“Currently, all hardware and software must be purchased through ReSource Point of Sale, LLC at a cost of approximately $7,500 per register. … You must also pay Company a POS license fee at the current cost of $2,000 per register, which is subject to change. … You must reimburse Company for the hardware, software, and installation Company pays its designated supplier to connect your Restaurant to Company’s private redundant network, at a cost of $4,500 per JERSEY MIKE’S Restaurant. You must also pay Company a $750 initial credit card processing software fee.”
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Headquarters designates the card processor.
“You must use Company’s designated credit card processing company, which may periodically change.”
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Supplies come from suppliers headquarters approves.
“Franchisee must purchase the products and services that Franchisor periodically designates only from the suppliers that Franchisor prescribes and only on the terms and according to the specifications that Franchisor approves.”
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Owners keep books to headquarters’ requirements.
“Franchisee shall establish and maintain a bookkeeping, accounting and record-keeping system conforming to the requirements and retaining all information prescribed by Franchisor.”
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Every location runs headquarters’ loyalty program.
“Company will require you to participate in certain system-wide promotions and programs, including the customer loyalty program with text messaging and email, the online ordering program, and the food and labor management software program.”
Point of sale: ReSource Point of Sale
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