One major franchise that needs a low investment and gives 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 menu with price 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 prospective franchise buyer to visit and see the restaurant in which they are training. The first 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, according to location and equipment needs. Nontraditional locations may require considerably less capital.
Subway units are situated in a wide range of sites which 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 less than 1 percent of the units fail, which is partly taken into account by franchise holders’ options to sell their unit or resell it towards the company. Based on company approval, the area, hours of operation, and additional food items offered are flexible. The standard subway menu with prices, however, cannot be omitted.
Nobody should purchase a Subway franchise-or other restaurant-without backup learning and experience. Subway franchise buyers attend the Franchise Training Course at headquarters at their particular expense. Some 2,000 franchisees annually attend both-week course covering management, accounting and bookkeeping, personnel management, and marketing. On-the-job learning nearby Subway restaurants is scheduled as well, totaling 34 in-store hours.
Three to four trainees are allotted to a training restaurant. The purchaser pays a weekly franchise fee of 8 percent and a 3.5 percent advertising fee based on sales. The purchaser has the option of life insurance; medical health insurance is yet 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 also noticed in the kinds of food offered: submarine sandwiches, salads, cookies, a small-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 your 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 and a family friend, Dr. Peter Buck, worked together on a business plan for a submarine sandwich shop. It took them four hours to produce and was implemented with a loan of $1,000 from Dr. Buck. The 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 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 most of its sales. Dr. Buck suggested tjyxda a second restaurant. ”That way men and women will see us expanding and believe that we’re successful.” It was not until that they had five stores and better locations the stores began making money. DeLuca is different the company’s system of franchise development repeatedly over the years and has kept the idea easy and relatively inexpensive for franchise buyers.