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Subway Franchise

Franchises

What's involved in owning a SUBWAY franchise?
www.subway.com

The No. 1 franchise is the United States, according to Entrepreneur magazine, is the sandwich chain SUBWAY, which offers healthy made-to-order subs, salads and soups in place of greasy fast food. The first SUBWAY franchise opened in 1974 in Wallingford , Conn., and today there are more than 22,693 SUBWAY restaurants i n 80 countries across the world.

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A SUBWAY franchise is a good option for wannabe franchisees because it is an established and well-respected brand. In fact, over 70 percent of franchise owners own more than one SUBWAY. Of course, success depends on each individual franchise; SUBWAY is careful not to lead on prospective franchisees with profit projections. The company is also looking to expand internationally and offers a variety of options for doing so.

If you're hopelessly addicted to their tasty subs and want to own a SUBWAY franchise for yourself, the franchising process is outlined at www.subway.com. But here's a brief overview of what it entails:

  • A franchise fee of $12,500
  • A total investment of $86,000-$213,000
  • An eight percent royalty fee
  • A renewable 20 year agreement
  • $30,000-$90,000 in net worth
  • A cash liquidity requirement of $30,000-$90,000
  • A 3.5 to 4.5 percent advertising fee; depending on where you franchise

Does SUBWAY offer financing?

They will suggest a third party financer and recommend taking an outside loan; the company does offer equipment leasing to all its franchises.

What is required to become a franchisee?

Fill out an application online and they will send you a disclosure form. SUBWAY also encourages prospective franchisees to do their research by talking to current franchise owners.

If you're serious about SUBWAY, and have been approved, prepare to participate in a two week training course split between class time and on-site learning. You will learn management and business skills, and need to prove what you have learned in a final exam. Then SUBWAY will aid you with site selection, restaurant design and ordering your equipment. SUBWAY requires six months of experience for those looking to franchise internationally.

What type of help does SUBWAY provide?

Once you are done with training and open for business, SUBWAY leaves the franchise in your hands - along with an Operations Manual of course. They offer ongoing field support and education, and will conduct periodic evaluations of your franchise. You are responsible for all hiring and staffing decisions as well as the overall management of your franchise.