Subway Franchise

The Story Of Subway And How Their Franchise Organisation Has Become One The Worlds Major Growing Franchises.

The famous brand Subway is an international restaurant franchise that sells sandwiches and salads. The creators of this franchise were Fred De Luca and Peter Buck who formed the restaurant in 1965. Subway is not the commercial name of the franchise it is Doctor’s Associates Inc or DAI. The business is truly international and is the world’s quickest growing franchise, with Franchises now higher than 27,000 in 85 different countries. The 1st franchise was begun in 1974 in Wallingford, Connecticut, USA.

The Franchises have positioned themselves as a healthier option restaurant, which adds enormous market attraction in today’s health conscious society but much of the Franchises expansion is down to its rare business model. Unlike most Franchises, the parent business does not run any restaurants. The Franchise Opportunity is given to regional Franchises to run the various stores and Subway holds the contract to be their development agent for that area. The development agent, Subway, is then responsible for developing these existing and new locations, studying the stores on a monthly basis and overall support for the various Franchises in whatever struggles that may occur. The break down of percentages for the Franchise For Sale choices are broken down like this, 8% of sales at each site go to royalties, 4.5% of sales go into a holding called the Subway Franchisee Advertising Fund Trust or SFAFT, which is lead by a board of directors voted in by the franchisees. The Franchise Opportunity comprises of the leasing of equipment, help with the franchise cost for minorities and for existing owners the Franchise For Sale choice comprises of remodelling, relocation and expansion loans.

The Franchise Opportunity comes with mandatory requirements. Each franchisee must attend a two week training course, this course teaches business concepts, methods of operation and basic management skills. The time for the training is split between the classroom and on site within a neighbouring Subway restaurant for work experience. After the training course each possible franchisee must pass a thorough exam in order to become possible for a Franchise Opportunity with Subway. As the Subway Franchise For Sale propositions are international there are training places in the UK, USA, Australia, China, Canada, Germany, Korea, India, Lebanon and Russia, and as the Franchises are developing everywhere so will the training places. Other courses on hand are for managers, multi owners of franchises, field consultants and development agents.

Like any franchise nothing is guaranteed, an amount of effort and hard work will be required to build your 1st franchise and especially if you decide to own multiple Franchises. The initial investment is quite good and owning a Subway franchise will give you a high income if you pick the appropriate location.

The speed at which the franchise is developing is remarkable and newest figures show that Franchises are opening at about 1,000 per year internationally, this is a clear signal that this business model will continue to build and lead the market for a lot of years to come. Subway Franchises can be found across the world and with the appropriate person at the appropriate location a Franchise Opportunity is there for you.