Established
1968
Franchise Units
56
Minimum Investment
$300,000
Franchise Fee
$30,000
Total Investment Range
$600,000
Home Based
No
Description
In the competitive world of American quick-service restaurants, few regional sandwich brands have built the kind of loyal following that Tubby’s Sub Shops enjoys. Known for its signature grilled subs, hearty portions, and neighborhood-friendly atmosphere, Tubby’s has carved out a distinctive position in the sandwich franchise space.
Unlike many cookie-cutter sub concepts, Tubby’s is built around bold flavor, hot-off-the-grill preparation, and a menu that reflects Midwestern comfort food roots. From its famous steak and cheese subs to specialty sandwiches, salads, and sides, the brand delivers a satisfying experience that keeps customers coming back week after week.
Why Invest in This Franchise?
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Established, recognizable sandwich brand with decades of history
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Strong repeat customer base and regional loyalty
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Recession-resilient QSR category
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Flexible store formats (inline, end-cap, strip center)
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Streamlined menu and operational simplicity
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Ongoing franchise support and marketing assistance
Background
Established Year: 1968
Founders: The brand was founded by Richard and Patricia Paganes in Michigan.
Industry Category: Quick Service Restaurant (QSR) – Sandwich & Sub Franchise
Tubby’s Sub Shops began as a single sub shop in St. Clair Shores, Michigan. The founders focused on delivering high-quality, grilled submarine sandwiches at affordable prices. The concept quickly gained popularity, leading to expansion through franchising.
Over the years, Tubby’s has developed a strong footprint primarily in Michigan and surrounding states. While the brand maintains a strong regional concentration, it continues to pursue growth opportunities within the United States.
Franchise Active Units: 56
Support Training
Tubby’s Sub Shops provides comprehensive franchise support to ensure new franchisees are well-prepared from day one.
Pre-Launch Support
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Site selection assistance and demographic analysis
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Lease review and negotiation guidance
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Store layout and design support
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Equipment and supplier sourcing guidance
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Construction oversight and brand compliance support
Initial Training Program
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Hands-on training at a designated training location
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Food preparation and kitchen systems training
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POS system and inventory management training
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Hiring and staff management best practices
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Food safety and quality control procedures
Marketing & Grand Opening Support
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Local store marketing toolkit
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Grand opening promotional guidance
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Brand-approved marketing materials
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Digital and social media marketing frameworks
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Regional advertising initiatives
Ongoing Operational Support
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Field support visits
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Ongoing operations coaching
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Menu updates and product development
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Supply chain management support
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Franchisee communication programs
Ideal Candidate
Tubby’s Sub Shops is best suited for motivated entrepreneurs who are passionate about food service and customer experience.
Preferred Qualities
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Strong work ethic and hands-on leadership style
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Interest in restaurant or hospitality management
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Community-focused mindset
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Ability to manage and motivate hourly staff
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Willingness to follow proven systems
While prior restaurant experience is beneficial, it is not always mandatory. The brand looks for franchisees who are coachable, committed to operational excellence, and financially prepared to meet investment requirements.
Investment Capability
Prospective franchisees should have:
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Adequate liquid capital
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Access to financing if required
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Long-term commitment to building the brand in their territory
Location Preference
Tubby’s performs best in:
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Suburban neighborhoods
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Strip malls and retail plazas
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High-traffic commuter corridors
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Community-focused commercial zones
Financial Detail
| Financial Category | Estimated Amount (USD) |
|---|---|
| Initial Franchise Fee | $20,000 – $30,000 |
| Total Estimated Investment | $300,000 – $600,000 |
| Minimum Investment Required | ~$300,000 |
| Liquid Capital Recommended | $100,000 – $150,000+ |
| Leasehold Improvements | $120,000 – $250,000 |
| Equipment & Fixtures | $75,000 – $150,000 |
| Initial Inventory | $8,000 – $15,000 |
| Grand Opening Marketing | $5,000 – $15,000 |
| Ongoing Royalty Fee | 4% – 6% of Gross Sales |
| Marketing/Ad Fund Contribution | 1% – 3% of Gross Sales |
| Working Capital (3–6 months) | $25,000 – $75,000 |
| Estimated Break-Even Timeline | 18 – 36 Months |
| Primary Revenue Streams | Dine-in, Takeout, Delivery, Catering |
