One major franchise that needs 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. Started in 1965, subway bread has greater 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 visit and see the restaurant where they are 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, 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 definitely the company’s statement that under 1 percent in the units fail, which is partly taken into account by franchise holders’ choices to sell their unit or resell it for the company. Based on company approval, the area, hours of operation, and extra food items offered are flexible. The standard subway drive in, however, should not be omitted.
No one should buy a Subway franchise-or some other restaurant-without backup learning and experience. Subway franchise buyers attend the Franchise Training Course at headquarters at their very own expense. Some 2,000 franchisees every year attend the 2-week course covering management, accounting and bookkeeping, personnel management, and marketing. On-the-job learning nearby Subway restaurants is scheduled as well, totaling 34 in-store hours.
3 to 4 trainees are assigned to a training restaurant. The buyer pays a weekly franchise fee of 8 percent as well as a 3.5 percent advertising fee based upon sales. The buyer has the choice of life insurance; medical health insurance is an additional purchase option. Each franchise buyer gets a copy of the 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 minimal-fat menu featuring sandwiches with under 6 grams of fat, and a low-carb option featuring wraps.
Subway features bread things that are prepared from frozen dough and served fresh from the oven. The frozen dough is thawed in a retarder unit in a refrigerator. The bread rises in a proofer and is then baked in a convection oven, in which 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 such as apple pie.
Subway History The Subway story began when Fred DeLuca, its cofounder, was 17 yrs old. He along with a family friend, Dr. Peter Buck, worked together on a business plan for any submarine sandwich shop. It took them four hours to produce and was implemented with a loan of $1,000 from Dr. Buck. The very 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 https://www.storeholidayhours.org/subway-holiday-hours-open-closed-today/.” When summer ended, so did the majority of its sales. Dr. Buck suggested tjyxda a second restaurant. ”That way individuals will see us expanding and think that we’re successful.” It had been not until that they had five stores and better locations the stores began making money. DeLuca has changed the company’s system of franchise development many times through the years and it has kept the idea simple and comparatively cheap for franchise buyers.