One major franchise that will require a small investment and provides a range of possible locations to franchisees is Subway, belonging to Doctor’s Associates, a Florida corporation with headquarters in Milford, Connecticut. Began in 1965, https://allfoodmenuprices.org/subway-menu-prices/ 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 which includes the names, addresses, and telephone numbers of active franchise holders, listed by state. Subway encourages the prospective franchise buyer to see and see the restaurant in which they may be training. The initial 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 considerably 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 is the company’s statement that under 1 percent from the units fail, that is partly accounted for by franchise holders’ options to sell their unit or resell it for the company. Depending on company approval, the place, hours of operation, and additional food items offered are flexible. The conventional subway drive in, however, cannot be omitted.
No person should buy a Subway franchise-or other restaurant-without backup learning and experience. Subway franchise buyers attend the Franchise Training Course 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 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 based upon sales. The customer has the choice of insurance coverage; medical insurance is another purchase option. Each franchise buyer gets a copy of the confidential operations manual containing about 580 pages. Menu Selection Subway’s flexibility in offering service in various locations is additionally seen in the types of food offered: submarine sandwiches, salads, cookies, a low-fat menu featuring sandwiches with less 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 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, 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 a business plan for any submarine sandwich shop. It took them four hours to create and was implemented with a loan of $one thousand from Dr. Buck. The very first restaurant was opened in Bridgeport, Connecticut, in 1965.
It did well in their first summer with 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.” When summer ended, so did the majority of its sales. Dr. Buck suggested tjyxda a second restaurant. ”That way men and women will see us expanding and feel that we’re successful.” It had been not until they had five stores and better locations that this stores began making profits. DeLuca is different the company’s system of franchise development many times over the years and contains kept the idea simple and relatively inexpensive for franchise buyers.