One major franchise that requires a minimal investment and gives 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 salad 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 where these are 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 by the franchisee ranges from $94,300 to $222,800, depending on location and equipment needs. Nontraditional locations may require much less capital.
Subway units are situated in a wide range of sites that include schools, colleges, offices, hospitals, airports, military bases, food markets, and truck stops-even casin.os. Most remarkable will be the company’s statement that under 1 percent in the units fail, that is partly included by franchise holders’ options to sell their unit or resell it towards the company. Depending on company approval, the place, hours of operation, and extra food items offered are flexible. The conventional subway hours, however, can not be omitted.
Nobody should buy a Subway franchise-or any 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 annually 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 buyer pays a weekly franchise fee of 8 percent along with a 3.5 percent advertising fee according to sales. The buyer has a choice of insurance coverage; health insurance is an additional 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 additionally seen in the types 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 from your 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, 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 including 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 your own business plan for any submarine sandwich shop. It took them four hours to create and was implemented having a loan of $one thousand from Dr. Buck. The first restaurant was opened in Bridgeport, Connecticut, in 1965.
It did well in its 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 think that we’re successful.” It had been not until they had five stores and locations that the stores began making money. DeLuca is different the company’s system of franchise development repeatedly through the years and contains kept the reasoning simple and comparatively cheap for franchise buyers.