Subway Franchise

Last Updated on August 3, 2012 by DeanR

Subway Franchise Information

Subway is a chain of fast food restaurants and a well known franchise that mainly sells sandwiches salads, and personal pizzas.
It basically offers a healthy substitute to other fast foods. subway is owned  by Doctor’s Associates, Inc. (DAI).It was formed in 1965 by  Fred DeLuca and Peter Buck in Bridgeport. It was then called Pete’s Super Submarines, however after a few years the founders changed the restaurants name to Subway.
Subway is one of the largest and fastest growing franchises worldwide; it currently operates over 32,120 restaurants in 90 different countries. Subway is the second largest restaurant chain worldwide after yum! (owners of Pizza hut) It has 35000 locations worldwide.
Subway’s main office is located in Milford, Connecticut, United States. However it has other regional offices in different international locations so as to support its rapidly growing brand.
Subway started operating franchises in 1974, and is still looking to increase the number of its franchises world wide. In the United Kingdom the company is planning to increase the number of its restaurant to 2,010 restaurants by the end of this year.

Subway franchisees requirements

Subway requires franchisees that are
  • Experienced in retail and/or restaurants and food service ownership.
  • Can follow a  well organized business management plan.
  • Sufficient  capital to develop the restaurant.
  • Hard working individual.
  • Prior successful business experience in the food industry.
  • A self motivated individual with a good business mind.

Financial requirements

United States Subway franchise information

  • The franchise fee is $15,000, however the total amount a franchisee invests may range from $84,000 to $258,000, and this includes training cost, grand opening, marketing, equipments and so on. How ever it does not include the purchase of real estate.
  • A franchisee is required to pay an on going royalty fee of 8% total of sales, and a further 4.5% to the iFAF for worldwide advertising and marketing costs.

United Kingdom Subway franchise information

  • In the United Kingdom Subway franchises fee is €10,000.
  •  It is estimated that a smaller subway store can be set up for as little as £100,000.
  • Subway is considered a very successful franchise with over 91% of UK franchisees reporting a profit last year.

Subway Franchise Training

Subway offers training to all of its franchisees in different aspects of the business including  business management , marketing , providing quality service, sandwich making and so forth. The training program is for two weeks. The training is done in different locations word wide including Australia, China, Germany, India, Montreal, Canada & Miami, FL.

Subway Franchise Operations

Subway franchisees are keen  to keep the following points when operating the franchise.
  • Franchisees are allowed to own more than one unit of the franchise, (more than 65% of all franchisees own more than one unit).
  • Franchisee will need at least 6 to 10 employees to run their franchise.
  • Absentee ownership of the subway franchise is not allowed.
  • All of the current franchise owners are active operator’s of the business.
  • Subway is an active supporter of different community organizations, and encourages its franchisees to do the same in their respective communities.
For further information you may request a subway franchise information brochure.
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