One major franchise that will require a small investment and offers a range of possible locations to franchisees is Subway, properties of Doctor’s Associates, a Florida corporation with headquarters in Milford, Connecticut. Started in 1965, subway restaurant has a lot more than 25,278 units in 83 countries and annual sales exceeding $3.9 billion.
Subway publishes a franchise-offering circular for prospective franchisers that also includes the names, addresses, and phone numbers of active franchise holders, listed by state. Subway encourages the potential franchise buyer to see and see the restaurant in which these are training. The initial fee is $15,000 for first-time franchise buyers. This fee is reduced to $4,000 for qualified owners purchasing additional franchises. Total initial investment through the franchisee ranges from $94,300 to $222,800, depending on location and equipment needs. Nontraditional locations may require considerably less capital.
Subway units are situated in a wide range of sites including schools, colleges, offices, hospitals, airports, military bases, grocery stores, and truck stops-even casin.os. Most remarkable is the company’s statement that under 1 percent from the units fail, which can be partly accounted for by franchise holders’ choices to sell their unit or resell it to the company. According to company approval, the location, hours of operation, and extra food items offered are flexible. The conventional subway sub of the day, however, can not be omitted.
No person should invest in a Subway franchise-or other restaurant-without backup learning and experience. Subway franchise buyers attend the Franchise Training Program at headquarters at their very own expense. Some 2,000 franchisees every year attend the two-week course covering management, accounting and bookkeeping, personnel management, and marketing. On-the-job education in nearby Subway restaurants is scheduled as well, totaling 34 in-store hours.
3 to 4 trainees are assigned to a training restaurant. The customer pays a weekly franchise fee of 8 percent and a 3.5 percent advertising fee based on sales. The buyer has a choice of life insurance; medical health insurance is another purchase option. Each franchise buyer receives a copy of a confidential operations manual containing about 580 pages. Menu Selection Subway’s flexibility in offering service in various locations is additionally noticed in the types of food offered: submarine sandwiches, salads, cookies, a minimal-fat menu featuring sandwiches with less than 6 grams of fat, along with a low-carb option featuring wraps.
Subway features bread things that are prepared from frozen dough and served fresh from your oven. The frozen dough is thawed in a retarder unit in a refrigerator. The bread rises in a proofer and is also then baked in a convection oven, where a fan speeds the baking process. Bread formulas are specified at company headquarters and uniformly followed worldwide. Fresh-baked goods include white and wheat scored bread, deli-style rolls, wraps, breakfast selections (at some stores), cookies, and specialty items like apple pie.
Subway History The Subway story began when Fred DeLuca, its cofounder, was 17 years old. He along with a family friend, Dr. Peter Buck, worked together on a business plan to get a submarine sandwich shop. It took them four hours to generate and was implemented having a loan of $1,000 from Dr. Buck. The first restaurant was opened in Bridgeport, Connecticut, in 1965.
It did well in the first summer with the aid of advertising slogans like ”Put a foot within your mouth,” emphasizing the foot-long sandwich, and ”When you’re hungry,make tracks for subway christmas hours.” When summer ended, so did almost all of its sales. Dr. Buck suggested tjyxda a second restaurant. ”That way men and women will see us expanding and think that we’re successful.” It absolutely was not until that they had five stores and better locations the stores began making money. DeLuca is different the company’s system of franchise development many times over the years and contains kept the concept simple and comparatively cheap for franchise buyers.