One major franchise that needs a low investment and provides a range of possible locations to franchisees is Subway, properties of Doctor’s Associates, a Florida corporation with headquarters in Milford, Connecticut. Began in 1965, subway salad 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 also includes the names, addresses, and cell phone numbers of active franchise holders, listed by state. Subway encourages the potential franchise buyer to visit and see the restaurant by which these 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 by the franchisee ranges from $94,300 to $222,800, according to location and equipment needs. Nontraditional locations may require much less capital.
Subway units are located in a wide range of sites which include schools, colleges, offices, hospitals, airports, military bases, grocery stores, and truck stops-even casin.os. Most remarkable will be the company’s statement that under 1 percent from the units fail, which is partly accounted for by franchise holders’ choices to sell their unit or resell it towards the company. Depending on company approval, the location, hours of operation, and additional food items offered are flexible. The conventional subway menu, however, can not be omitted.
Nobody should purchase a Subway franchise-or some other restaurant-without backup learning and experience. Subway franchise buyers attend the Franchise Training Curriculum at headquarters at their own expense. Some 2,000 franchisees each year attend both-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 allotted to a training restaurant. The customer pays a weekly franchise fee of 8 percent along with a 3.5 percent advertising fee according to sales. The customer has a choice of insurance coverage; medical insurance is another purchase option. Each franchise buyer turns into a copy of the confidential operations manual containing about 580 pages. Menu Selection Subway’s flexibility in offering service in various locations can also be noticed in the types of food offered: submarine sandwiches, salads, cookies, a small-fat menu featuring sandwiches with less than 6 grams of fat, as well as 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 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 of age. He as well as 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 having a loan of $1,000 from Dr. Buck. The initial restaurant was opened in Bridgeport, Connecticut, in 1965.
It did well in its first summer through the help of advertising slogans like ”Put a foot in 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 people will see us expanding and believe that we’re successful.” It had been not until that they had five stores and locations the stores began making money. DeLuca has changed the company’s system of franchise development several times over time and contains kept the reasoning basic and relatively inexpensive for franchise buyers.