One major franchise that requires a small investment and provides a range of possible locations to franchisees is Subway, owned by Doctor’s Associates, a Florida corporation with headquarters in Milford, Connecticut. Began in 1965, subway bread 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 includes the names, addresses, and phone numbers of active franchise holders, listed by state. Subway encourages the prospective franchise buyer to see and notice the restaurant by which they may be training. The first 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, based on location and equipment needs. Nontraditional locations may require much less capital.
Subway units can be found in a wide range of sites that include schools, colleges, offices, hospitals, airports, military bases, grocery stores, and truck stops-even casin.os. Most remarkable is definitely the company’s statement that less than 1 percent of the units fail, that is partly included by franchise holders’ options to sell their unit or resell it for the company. Depending on company approval, the area, hours of operation, and extra food items offered are flexible. The conventional subway drive in, however, can not be omitted.
No person should purchase a Subway franchise-or any other restaurant-without backup learning and experience. Subway franchise buyers attend the Franchise Training Curriculum at headquarters at their particular expense. Some 2,000 franchisees each year attend the two-week course covering management, accounting and bookkeeping, personnel management, and marketing. On-the-job training in nearby Subway restaurants is scheduled as well, totaling 34 in-store hours.
Three or four trainees are allotted to a training restaurant. The buyer pays a weekly franchise fee of 8 percent along with a 3.5 percent advertising fee based on sales. The purchaser has the choice of life insurance coverage; health insurance is another purchase option. Each franchise buyer turns into a copy of any confidential operations manual containing about 580 pages. Menu Selection Subway’s flexibility in offering service in various types of locations is also observed in the types of food offered: submarine sandwiches, salads, cookies, a low-fat menu featuring sandwiches with under 6 grams of fat, and a low-carb option featuring wraps.
Subway features bread items that are prepared from frozen dough and served fresh through the oven. The frozen dough is thawed in a retarder unit in a refrigerator. The bread rises in a proofer and it is then baked in a convection oven, wherein 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 including apple pie.
Subway History The Subway story began when Fred DeLuca, its cofounder, was 17 years old. He as well as a family friend, Dr. Peter Buck, worked together on your own business plan to get a submarine sandwich shop. It took them four hours to produce and was implemented using 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 help of advertising slogans like ”Put a foot within your mouth,” emphasizing the foot-long sandwich, and ”When you’re hungry,make tracks for subway hours of operation.” When summer ended, so did the majority of its sales. Dr. Buck suggested tjyxda a second restaurant. ”That way people will see us expanding and believe that we’re successful.” It was not until that they had five stores and locations that the stores began earning money. DeLuca is different the company’s system of franchise development several times over time and contains kept the idea simple and comparatively cheap for franchise buyers.