28 Aug, 2017

Subway Franchise

Subway was started in 1965 and was known as Pete’s Super Submarines. Franchising opportunities were introduced in 1974 and they are ranked highly in the market. Today Subway franchises total up to 21,000 in the USA alone. In Canada there are 2,300 locations and has spread their presence world wide by opening about 5,500 more locations in 80 different countries. No Subway franchises are owned by the parent company. This means that franchisees do not scramble for business with the franchisor. There are many applications that are received from aspiring Subway franchise owners proving the popularity of these franchises.

New franchisees based in the USA go through two-week training at the Connecticut head office of Subway. Abroad training facilities are available in Germany, India, Australia, Canada and China. The franchisees are equipped with methods of operations, basic skills of management and business concepts during the training. A Subway franchise is a training ground for the owners to improve their sandwich making skills. This training is necessary for any new franchisee. More than half of Subway franchisees are multi unit owners. Besides the initial training you will get on going training.

The cost of this training is included in the franchise cost. You will not be surprised asked later in future when you are asked to pay training fees. In this training field operations are evaluated and areas such as customer care and support and opening assistance are looked into. More information is given to the franchisees through monthly newsletters that contain information that affect the industry. Subway takes marketing of their products very seriously. Their ads are designed to leave a mark on the target market.

As a Subway franchisee you will benefit from co-op advertising system, coupon mailing and national marketing strategies that focus on customers in a particular region. Every franchise arrangement requires an upfront payment of franchise fees to the franchisor. Our franchise fees are quite reasonable when compared to other franchisors. A Subway franchise will cost you $15,000 initial franchise fee. The total investment cost is about $79,000 to $240,000. This variance is as a result of different prices of business premises in different places. A franchisee would be required to have $80,000 to $300,000 in liquid cash and a net worth of $30,000. You can reach agreements with Subway to finance your franchise cost as well as any equipment you may need. You can also get financing from third parties if you need financing for other costs.

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