One major franchise that requires a minimal 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. Started in 1965, subway catering menu 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 cell phone numbers of active franchise holders, listed by state. Subway encourages the prospective franchise buyer to visit and notice the restaurant by which they may be training. The primary 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 considerably less capital.
Subway units can be found 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 less than 1 percent in the units fail, which can be partly taken into account by franchise holders’ choices to sell their unit or resell it towards the company. Depending on company approval, the place, hours of operation, and additional food items offered are flexible. The typical subway specials, however, can not be omitted.
No person should invest in a Subway franchise-or some other restaurant-without backup learning and experience. Subway franchise buyers attend the Franchise Training Curriculum at headquarters at their very own expense. Some 2,000 franchisees every 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.
Three or four trainees are assigned to a training restaurant. The customer pays a weekly franchise fee of 8 percent along with a 3.5 percent advertising fee based on sales. The buyer has the choice of life insurance; medical insurance is yet 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 also seen in the kinds of food offered: submarine sandwiches, salads, cookies, a minimal-fat menu featuring sandwiches with lower than 6 grams of fat, and a low-carb option featuring wraps.
Subway features bread items which 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 is also 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 like apple pie.
Subway History The Subway story began when Fred DeLuca, its cofounder, was 17 years of age. 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 produce and was implemented with a loan of $1,000 from Dr. Buck. The initial restaurant was opened in Bridgeport, Connecticut, in 1965.
It did well in the 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 the majority of its sales. Dr. Buck suggested tjyxda a second restaurant. ”That way people will see us expanding and think that we’re successful.” It absolutely was not until that they had five stores and much better locations the stores began making profits. DeLuca has changed the company’s system of franchise development repeatedly over the years and has kept the idea basic and relatively inexpensive for franchise buyers.