prime dip

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Interested in Prime Dip Gourmet Sandwiches!

Prime Dip Gourmet Sandwiches was created and developed out of the need to reinvent how sandwiches are done . After a decade of experience in the fast food industry, the founders of Prime Dip decided to start this new concept. Over a year in development, PD was born out of taking a blend of successful fast food concepts and creating a concept that is simple to build, own and operate. The first store just opened in 2011 in San Francisco and the response by the public has been overwhelming.

Prime Dip Gourmet Sandwiches offers hard working, dedicated entrepreneurs a valuable business opportunity because it allows them to establish a business that competes directly with the big franchise chains for a fraction of the investment outlay and without royalties.


For an application E-Mail: info@primedip.com


What’s the difference between licensing and franchising?

The biggest difference is the cost of establishing and operating the business. With a franchise, there is a significant franchise fee paid up front and then ongoing royalties and advertising fees (see table below). The parent company keeps very tight controls on every aspect of your business but they also provide a lot of assistance in the management and marketing of your store. With licensing, there is a one-time, licensing fee paid up front but there are no royalties, and therefore, you do not have to report earnings to ort earnings to PD. Whereas some fast-food sandwich franchises cost more than one million dollars to get into, a PD store costs as little as $150,000 to establish a planned restaurant, even less for an existing one. This allows the “small guy” access to a successfully established product with a 30 year track record. Our relatively low start-up expenses have attracted hard working entrepreneurs with limited financial means, and because of this, most of PD owners will be minorities, whom many have achieved a high level of financial success. PD competes directly with the big names like Subway, Quizno's, ToGo's and Jimmy John's; our stores will surrounded by these businesses.

In a licensing arrangement, you have more freedom in the operation of your business than with a franchising situation, but also more responsibility (there is also more risk and potential reward). You have the freedom to set your own hours, charge whatever prices you want, co-brand with whatever food you wish, offer whatever side dishes you prefer, set your own employment policies, etc. The only requirements are that you purchase PD designated products and any imprinted items (boxes, bags, and cups with the PD logo.png printed on them) through a designated PD distributor. You must also make sure that your signs and marketing materials meet trademark specifications. That’s all there is to it. It is, however, your responsibility to know how to manage and market your restaurant business; PD provides you with the training necessary for you to produce a quality product but not how to run a business.


How much does a license cost?

The license fee is $30,000.Licenses are sold on an individual basis or for an exclusive geographical area such as a county, CA or country. Individual licenses include a minimum of one-mile radius exclusive area

The terms and prices of exclusive geographical areas are negotiable based on the situation and size of the area.

The license must be purchased within 3 days of signing the lease agreement for the given location in order to secure your exclusive area. A late fee of 10% APR ($5 per day) will be incurred if the license fee is not paid on time


What do I receive for the license fee?

1. The right to use the Prime Dip name and trademark.

2. The right to produce and sell PD products.

3. A one-mile (minimum) radius exclusive area.

4. Consultation in the selection of your location.

5. Assistance in acquiring equipment used in the production of PD products.

6. Assistance in acquiring signs which meet trademark specifications.

7. PD Operations Manuals.

8. Hands-on training at a company store.

9. Initial point-of-sale promotional materials.

10. The PD Newsletter.

11. Posting of your location and Grand Opening on our website.


What are the terms of the License Agreement?

1. You agree to protect the PD name, trademark, and intellectual property, such as recipes, from unauthorized use

2. The term of the license is 20 years, at which time you have the option to renew it for one half of the original license fee.

3. You agree to purchase PD products from a designated distributor. These products are:

PD Marinated and Cooked Roasted Prime Rib

PD Marinated and Cooked Roasted Pork

PD Marinated and Cooked Roasted Turkey Breast

PD Side

PD Spices

4. You agree to prepare PD products according to the instructions in the PD Operations Manual.

5. You agree to purchase imprinted items (serving boxes, bags and cups with the PD trade mark printed on them) if available in your area.

6. You agree to use authorized vendors for producing your signs and menu boards so that all signage meets our trademark specifications.

7. You must meet cleanliness and health standards set forth by the local health department and comply with all local laws and regulations.

8. If you sell your business, there is a license transfer fee of $10,000 to be paid by the new owner; this must be disclosed in the sale.


What are the steps involved in becoming a licensee?

Step 1. Request an application here online by contacting us at info@primedip.com. Please include information about how you found out about PD, what kind of experience you have, and which area(s) you are interested in developing a store. The PD License Application is simply a standard financial CAment which we use to verify your financial standing and run a routine credit check (a minimum net worth of $150,000 is required; you do not need to have this amount of money in the bank, your assets minus your liabilities must be at least this amount). Once your application is approved, we will mail you part one of the PD Operations Manual which contains key information about selecting a good location and setting up a store for efficient operations.

Step 2. Scout out a location and negotiate a favorable lease. Keep in mind the old adage, LOCATION, LOCATION, LOCATION. Take your time and do your homework. Consider all aspects including demographics, traffic flow, parking, etc. Once you have found suitable locations, we will look at these and provide you with additional input in order to help you in the decision making process. Once you make your final decision, it is up to you to negotiate for the best terms keeping in mind that all terms of a lease are negotiable.

Step 3. After signing the lease, you have 3 days to purchase your PD License in order to secure your one mile radius exclusive area. A late payment fee of 10% (APR) will be charged if license is not purchased on time

Step 4. Upon purchasing a license, you will be provided with part 2 of the PD Operations Manual which contains detailed instructions on how to prepare PD products.

Step 5. You build out your store by creating the design plans, hiring a contractor, and following the checklists in the Operations Manual.

Step 6. You obtain hands-on training at a company store. Here you will learn how to properly produce PD sandwiches and side dishes. This usually takes 2 days, more or less as your needs require. Once you are operating, additional training and consulting is available for a fee ($200/day plus travel expenses).

Step 7. You prepare for your Grand Opening and begin operations of your store.

Note on Location: You know your community best so you probably know where to look. In terms of the size of a space to look for, most PD stores should run between 500 and 1000 square feet depending on whether it has table seating or is strictly take-out. Leases generally run between $2.00 and $3.50 per square foot. Free-standing buildings (especially drive-thu) do the best, yet end-caps also do well, so this is what you want to look for. Ideally, you may find an existing restaurant which has some equipment already in place (walk-in cooler, fryers, hood, etc.). A rough estimate for starting from scratch with an empty building and hiring a contractor to build it out, then adding equipment, signs and menu boards, etc., is $150,000 plus the $30,000 for the license, but there are many variables that can make it more or less than this. Constructing a new store from the ground up from a vacant lot will cost upwards of $250,000. If you are interested in a turnkey business, contact us and we will let you know if any of the PD stores are for sale


What makes a PD business successful?

1. Location – The primary factors to consider are :

Exposure and Appearance : How well are customers able to see your business and signs? Does your store look clean and inviting

Traffic Flow : How many cars drive by per day? Is there significant foot traffic?

Ease of Access : Is there good parking? Are customers able to drive into your parking lot easily?

Demographics : what is the ethnic make-up surrounding your location? Is your location in a residential area that will provide mostly a Monday through Friday lunch business

2. Product Quality and Consistency – If you apply what you learn in training and follow the instructions in the Operations Manual, you will produce a quality product that sells itself. PD has a loyal following of regular customers when our product is made the right way. Taking shortcuts that compromise quality will only cost you in the long run.

3. Customer Service – Treat your customers the way you want to be treated, with respect. Make sure your employees are properly trained in customer service. Create efficient operations for quick service.

4. Promotion and Advertising – Develop a marketing strategy that fits your situation. PD is easily recognized by customers if properly promoted. Prominently display signs and logo.pngs. Employ local strategies such as point-of-purchase advertising (photo posters in your store) and neighborhood flyers. Get involved with community groups and stage promotional events.


Individual License

If you are interested in opening an individual PD store, you probably have an idea about the area you want to locate it in; you know your community best so you probably know where to look for an available space. In terms of the size of a space to look for, PD stores run between 500 and 1000 square feet depending on whether it has table seating or is strictly take-out.

Leases generally run between $2.00 and $3.50 per square foot depending on the demographics of the area and the age of the building. Free-standing buildings (especially drive-thru) do the best, yet end-caps with good exposure also do well, so this is what you want to look for.

Ideally, you may find an existing restaurant for sale which has equipment already in place (walk-in cooler, fryers, hood, etc.) then it is just a matter of remodeling. Usually a compromise in the design is required so you may not end up with the most efficient layout.

A rough estimate for starting from scratch with an existing empty building and hiring a contractor to build it out, then adding equipment, signs and menu boards, etc., is $150,000 (plus the $30,000 for the license), but there are many variables that can make it more or less than this. Some municipalities require new restaurants to have a grease trap, a septic-tank-like reservoir which is buried in the ground at the sewage inlet, this may add to costs.

If you own suitable real eCA, constructing a new store from the ground up will cost upwards of $250,000.

If you are interested in a turn-key business, contact us and we will let you know if any of the PD stores are for sale.


Co-Branding

Perhaps you already have an existing fast food business and would like to co-brand by adding Prime Dip Gourmet Sandwiches to your menu offerings. PD can be successfully co-branded with Chinese food, pizza, doughnuts, fish and chips, and others. You may co-brand PD sandwiches with any other food you would like.

In most cases, you already have the equipment needed to produce Prime Dip Gourmet Sandwiches so the start-up costs only entail the license fee, signs and menu boards.

Co-branding will expand your market share by offering a greater variety of prepared foods and possibly extending your hours of operation; for example, adding Prime Dip Gourmet Sandwiches to a doughnut shop provides a lunch and dinner business which does not exist with doughnuts alone.

Co-branding has shown to be very successful. In some cases, the addition of Prime Dip Gourmet Sandwiches to an existing business quadrupled gross sales.

If you have a grocery or convenience store that is already serving a generic sandwiches, you may significantly increase sales by offering the name brand recognition of Prime Dip Gourmet Sandwiches which has a unique flavor and loyal following.


Exclusive License Agreements

Prime Dip Gourmet Sandwiches can be very successful in Los Angeles, and we would like to expand into new market areas. There is a vast untapped market for Prime Dip Gourmet Sandwiches in other metropolitan areas so we are looking for entrepreneurs who have the resources to expand our brand name.

We now manufacture the meats in our partnered manufacturing facility in San Leandro CA. This enables us to cost effectively ship our products throughout the continental United CAs.

We are looking to replicate the success of PD in other key market areas in the South and Midwest such as Atlanta, Chicago, Dallas, Memphis, Cincinnati, etc.

We are willing to grant an exclusive license agreement for a geographical area be it a county (or combination of counties), a CA, or even a country, on condition that you have the financial resources for this level of expansion. With an Exclusive License for an entire CA, you may wish to develop a franchise for that CA and become the Master Franchisor.

The price and terms of an Exclusive License are negotiable, please submit a detailed proposal for consideration.