Francorp Client - USA Subs

Derry Sub Shop To Franchise Nationally
(Sunday, July 22, 2007) - USA Subs, for two decades a fixture as a standalone shop at 66 Crystal Ave., Derry, is about to go national.Working with Olympia Fields, Ill.-based Francorp, USA Subs has prepared for a roll out of its sandwich shop concept."We are going to be registering in every state in the country as of the first of the year," Karl Kuceris, co-founder and chief executive officer of USA Subs, said.

Founded in 1986 by Kuceris and partner Russell Hertrich, the chief financial officer, USA Subs last year brought in Kuceris' son, Keith Kuceris, as a partner and chief operating officer.The three formed American Dream Franchising LLC to franchise USA Subs, which is known for its "Steak Bomb" sandwich."Russell happens to be my best friend since first grade, and we're both in our 50s now," Karl Kuceris said. "We decided, you know, we're going to go with this, and we're going to put Derry, New Hampshire, on the map just like Subway did to Milford, Conn."USA Subs has an extensive menu of sandwiches, wraps and salads, offering items that are similar to those found at Subway, Quiznos and D'Angelos. USA Subs also offers a 6-foot party sub. "We sell those to companies in Boston," Kuceris said.Meat and veggie subsThat combination of choice under one roof has drawing power. "We're actually, we've been told, one of the highest volume sandwich shops in New Hampshire," Kuceris said.

The Derry sub shop sells more than 600 pounds of steak a week."We've got customers who come from Boston, and an elderly couple who come from Durham, N.H., an average of three times a week," he said.USA Subs has partnered with the largest developer of franchises. Francorp counts among its clients Jimmy John's Gourmet Sandwiches, Bridgestone, Shell and Ace Hardware.Donald D. Boroian, founder and chairman of Francorp, is bullish on USA Subs. "We are seeing the emergence now of new players in the sub sandwich in particular," he said. "They're doing a lot of turkey and chicken and even vegetarian sandwiches."USA Subs has gone beyond that point of the standard fare, and they serve a premium product," Boroian said. "As a result of that, we believe they have a very good shot at the sandwich industry, at the franchise industry in general."Boroian noted the cost of opening a USA Subs franchise will be less than many competing franchise restaurants because a freestanding building isn't required and they can be situated in shopping centers and storefronts.

Initial outlays for new franchisees will range from about $296,500 to $421,167, according to the www.usasubs.com Web site. Franchisees can lower their start-up costs by leasing rather than buying their equipment, Kuceris said.That's substantially less than the average $1.5 million investment it takes to start a typical fast food restaurant in a freestanding building, according to Boroian.Potential franchisees as well as franchisors can take a free quiz and download a free book from the Francorp Web site, www.francorp.com.Kuceris said 32 candidates have applied to franchise USA Subs stores, all but two for sites in New Hampshire. The others are in Maine and New Jersey."A lot of these franchise stores have been having problems over the years, and the problem is that they don't do enough volume," Kuceris said."To do the volume, you have to have the product that the customer wants," he said. "Especially in New England, you have to have a grill. Our grilled Steak Bomb is our most popular sandwich,"Newest partner Keith Kuceris worked in his father's business as a high school and college student, but detoured for awhile with stints as a soap opera actor in New York (One Life to Live and All My Children) and director of ticket operations for the Pawtucket Red Sox. He returned to the family business full time a year ago, officially becoming a partner in USA Subs Jan. 1."My parents came over from Latvia and this kind of thing was the American Dream to them," Karl Kuceris said."We can actually offer that to other people. That's why we came up with the American Dream Franchising name."I've got one guy that's been with me 20 years, another 15 years," he said."We actually try to take care of our people better than the average chain does; it's a really strong family atmosphere that we have here. That's what it's all about. It's about family, it's about independence, it's about that dream. "It takes a lot of hard work, but the hard work can pay off," he said.

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