One major franchise that needs a small investment and gives a range of possible locations to franchisees is Subway, belonging to Doctor’s Associates, a Florida corporation with headquarters in Milford, Connecticut. Started in 1965, subway specials 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 which includes the names, addresses, and telephone numbers of active franchise holders, listed by state. Subway encourages the prospective franchise buyer to see and notice the restaurant where 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 much less capital.
Subway units are situated in a wide range of sites that include schools, colleges, offices, hospitals, airports, military bases, supermarkets, and truck stops-even casin.os. Most remarkable will be the company’s statement that lower than 1 percent of the units fail, that is partly taken into account by franchise holders’ options to sell their unit or resell it towards the company. According to company approval, the location, hours of operation, and additional food items offered are flexible. The standard https://www.storeholidayhours.org/subway-menu-prices/, however, can not be omitted.
Nobody should invest in 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 the 2-week course covering management, accounting and bookkeeping, personnel management, and marketing. On-the-job training in nearby Subway restaurants is scheduled as well, totaling 34 in-store hours.
Three or four 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 the option of life insurance; medical insurance is another purchase option. Each franchise buyer turns into a copy of a confidential operations manual containing about 580 pages. Menu Selection Subway’s flexibility in offering service in various types of locations is additionally noticed in the kinds of food offered: submarine sandwiches, salads, cookies, a minimal-fat menu featuring sandwiches with less than 6 grams of fat, and a low-carb option featuring wraps.
Subway features bread items 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, wherein 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 old. He and a family friend, Dr. Peter Buck, worked together on your own business plan for a submarine sandwich shop. It took them four hours to produce and was implemented using a loan of $one thousand from Dr. Buck. The initial restaurant was opened in Bridgeport, Connecticut, in 1965.
It did well in the 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 opening hours.” When summer ended, so did most of its sales. Dr. Buck suggested tjyxda a second restaurant. ”That way individuals will see us expanding and feel 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 it has kept the concept basic and comparatively cheap for franchise buyers.