SUBWAY Franchise Startup Cost, Profit Margin, Revenue and Locations
Review: How much is a subway franchise? Subway Franchise is the largest global fast food chain which offers some exciting prospects for those seeking to partner as a franchisee. This has seem to be the destination of choice for all who desire healthy meals, which are affordable and qualitative. Interestingly its motto is “Eat Fresh”. The following are historical shots of the Subway fast food chain of restaurant franchises:
Subway primarily offers to the public submarine sandwiches and salads. Fred Deluca was the first to establish the first Subway restaurant in Bridgeport , Conneticut in 1965. He joined forces with Dr Peter Buck, who offered a 1,000 USD loan, thus forming a partnership.
Subway is the largest server of quick meals, with over 44,672 restaurants operating under its trademark. In the United States alone, it has over 27,000 convenient stores. Doctor’s Associates Inc is the parent body overseeing the starting of any subway franchise structure.
Subway group of restaurants spent over 156,000,000 million USD on advertising, in 2012. The group had opened over 30,000 largest stores by the end of 2013. 95 percent of the trays used in serving customers are made from recycled waste materials.
CHECK: DOLLAR TREE FRANCHISE
Subway’s menu consist of the following, although variations exist from region to region: Chicken Pizziola, Chicken Teriyaki, Chicken Tikka,Chipotle Chicken, Italian B.M.T,Roasted Chicken, Meatball Marinara, Steak & Cheese, Italian Spices, Subway Club, Subway Melt,Tuna, Veggie Delite, and Veggie Patty.
SUBWAY FRANCHISE INCOME, BENEFITS AND INFORMATION
How to own a subway franchise
The Subway Franchise structure places the responsibility for the daily working operations of our franchised restaurants in capable and determined hands, and working closely with franchisees to grow together. The Franchisee has an opportunity to leverage on the founding ideals of the owners in delivering fresh wholesome meals, which has transformed the group to the largest fast food conglomerate.
To become a franchisee with Subway is a thorough and extensive exercise. The outlay is as follows:
STARTING A FRANCHISE SUBWAY
It begins with a Subway Franchise Application
Every eligible candidate must fill and complete a request form to apply for the franchise licence. The applicant will then receive a Subway Franchise Document with substantial information. The next task to owning an existing subway franchise that is put on sale will be passing a rudimentary skills test. Then you will be ready to explore various Subway franchise business opportunities assisted by the local development office. The development office and Doctor’ Associates Inc will then evaluate applicant’s performance and indicate to the candidate acceptance to the next stage.
Cost of SUBWAY Franchise
How much does it cost to franchise a subway offered for sale? Subway startup franchise fee is $15,000. Upon achieving qualification to acquire additional locations, the royalty fee is $7,500. This is the basic cost of opening a subway franchise.
Terms and Conditions
The $15,000 franchise dues grants access to get a franchise binding for twenty years. This franchise startup cost can be renewed for an additional twenty years at no further costs for the contract transfer.
Subway Ownership Startup Costs and Capital Requirements
What are the basic subway franchise requirements?
Total funds needed to open this franchise can range from $114,800 to $258,300 for traditional sites and $84,300 to $200,100 for non-traditional locations. This cost of buying a subway franchise covers the franchise fee, construction and equipment costs as well as seed capital. These computations depict the initial net investment once eligibility is obtained for the company’s equipment leasing program.
If the equipment leasing program is not selected or it is not available, the applicant can substitute the costs for Equipment Lease Security Deposit with $49,500 to $72,000. It is recommended that franchisees have half of the amount in cash and secure financing for the other half, as it preferable that the franchisee does not grapple with a large debt burden.
Subway Franchise Financing Options
Subway Franchise can furnish potential franchisees with a list of facility lenders, who are knowledgeable about the franchise structure. Applicants are also encouraged to explore additional sources for funding including personal savings and investment accounts, mortgage loans/lines and financial assistance from family and friends.
Securing Equipment For Subway Franchising Business
Applicants may purchase standard SUBWAY equipment and tools with cash or on hire purchase. The SUBWAY® franchise system also affords the franchisee the opportunity to obtain necessary equipment via a package that requires a security deposit of 10% of the costs of equipment with a minimum down payment of $1,000.
The lease payments run from periods spanning and up to 60 months. At the end of the lease term franchisees may buy the equipment for 10% of the original cost. The security deposit will be included in offsetting the purchase.
The duration of franchise training and coaching runs for two week. Half of the time is spent in class, the other half at a designated store. In addition, all franchisees who have scaled the last hurdle, must satisfactorily undergo further training SUBWAY Global Headquarters before the commencement of their franchise.
Subway Franchise Expected Return on Investment
SUBWAY is not at liberty to disclose an earnings (average profit per year) claim tied to running and operating a franchise store, because these results vary from region to region. However, potential franchisees are free to contact existing SUBWAY franchise owners and getting relevant information from them.
Subway Franchise Marketing and Advertisement Procedures
Beyond the one time Subway franchise fee of $15,000, franchisees are mandated to pay advertisement royalties to the general advert pool of Doctor’s Associates Inc, calculated at 4.5% of weekly gross sales. Franchisees will also be required to pay a royalty fee of 8% of weekly sales for the SUBWAY trademark use.
Securing Additional Subway Franchise Locations
Franchisees are encouraged to source for additional locations, as part of a multi-store development drive. The franchisee may also submit a desired and the business support consultant will investigate your location and provide an analysis of its viability for further development.
Subway Food Sources
All franchisees are required to order food and other feeder materials from an approved vendor, in their locality.
Operational and Field Support
Successful applicants will be assigned to a field and business consultant, that will provide assistant to the franchisee adhere to the very high standards associated with running a store on Subway franchise.
Moreover, the franchisee will have available a mix of support systems that include franchise support centre, group online platforms and other resources which includes the Subway Partners website and University of SUBWAY courses.
Do you know how much franchising a Subway cost? As a startup entrepreneur, it is most of the times advisable to tap into a franchise than starting up your own business, especially if you want to go into the food or restaurant business. When you buy into a franchise, you are presented with the opportunity to get the license to an established business and then have uninterrupted access to their business procedures and processes. One of the businesses you can delve into is the Subway Franchise. Now the question is how much is a Subway Franchise?
In this article, we will be taking an in-depth look into the Subway franchise, its history, procedure of getting a Franchise with the company and the cost of starting a Subway Franchise.
HISTORY OF THE SUBWAY
Subway can be considered to be a well established licensor of its numerous franchise stores. They have a very high popularity in the franchise business and are known to have one of the lowest franchise costs across the United States.
The Subway Franchise opened its first restaurant in the year 1965 and was founded by Fred DeLuca. He was born in the year 1947 in New York and there after moved to Connecticut where he spent the most part of his childhood.
When he was 17 years old, he requested for a $1000 loan from a family friend, Dr. Peter Buck to open a sandwich shop. He gave the shop the name Pete’s Super Submarines. In the year 1974, it changed name to become Subway and had 16 different store units opened across the state of Connecticut.
THE SUBWAY FRANCHISE
In the same year 1974, Subway opened their first franchise store in Wallingford, Connecticut and since then the concept has continued to grow. As at the year 2013, Subway was launching at least 50 new restaurants every week.
They have been able to build a strong strategic concept round their sandwiches and the overall fast food experience. The exponential growth the company enjoyed has allowed it to grow to about 43,000 stores open in about 100 countries across the world as at the year 2016.
HOW TO BUY A SUBWAY FRANCHISE
Subway offers qualified franchisees the license to establish and run a retail franchise business using their brands and concepts. This can be operated from a single location selling foot-long and special sandwiches and salads.
If you want to buy a Subway Franchise, you will be expected to complete an application form on the internet or you could request for one from their development office. You will be offered a Franchise Disclosure Form.
You will then be expected to take a basic skills test. If you are able to pass this after the assessment, you will then be given the opportunity to investigate into the Subway Business Opportunity with the assistance of a local development officer. The development office and the Doctor’s Associates Inc, which is the parent company of the Subway Franchise will then be the ones to determine if you are able to meet up with the standards required to get a Subway Franchise.
COST OF A SUBWAY FRANCHISE
Before applying for the Subway Franchise opportunity, one thing you will need to bear in mind is the cost of the Subway Franchise and then decides if you have the financial capacity to embark on the financial implications of getting/buying a Subway Franchise.
One of the major selling points that Subway enjoys is the low cost offering of their franchise. The first step that is expected of the franchisee for Subway is to identify a store and then pay the initial cost. The initial cost will include the real estate value and also construction expenses of the identified store. This is estimated to be between the range of $120,000 to $270,000 and when you compared this with other fast-food franchises, it is extremely lower.
The initial startup fee of a Subway Franchise is $15,000. You will also be expected to make an annual royalty fee of 8% of the annual gross sales. And you will also need to make provisions for an Advertisement fee of about 4.5% of the total gross sales.
HOW MUCH DOES A SUBWAY FRANCHISE MAKE?
As an entrepreneur, you might want to feed yourself with the information of the profit margin for any business you want to go into. If you have decided to become a Subway Franchisee and would want to know how much a Subway Franchise make in a year. You should be aware that the company is quite profitable due to its reputation as being one of the foremost franchises with the best fast-food sandwich in the industry.
With the rate at which the Subway Franchise is ranked and the level of mind-blowing services they render to their customers, you as a franchisee should definitely expect a very high return from your investment into the brand.
Annually, it is reported that a typical Subway restaurant averages a total sales of approximately $500,000
Is Subway a franchise? How much does a Subway franchise cost? Do you need information on Subway franchise cost and requirements to open one?
Subway IP Inc., (working together as Subway) is a personal American fast food eatery establishment that fundamentally offers submarine sandwiches (subs) and servings of mixed greens. It is possessed and worked by Specialist’s Partners, Inc., working together as Subway IP, Inc.
Subway is one of the quickest developing establishments on the planet, with 44,882 eateries in 112 nations and domains as of December 27, 2016. The Assembled States alone has 26,646 outlets. It is the biggest single-brand eatery network and the biggest eatery administrator on the planet. Subway’s worldwide central station is in Milford, Connecticut; five provincial focuses bolster Subway’s universal operations. The local workplaces for European establishments are situated in Amsterdam (Netherlands), the Australian, and New Zealand areas are upheld from Brisbane (Australia); the Asian areas are bolstered from workplaces in Beirut (Lebanon) and Singapore, and the Latin American bolster focus is in Miami.
In 1965, Fred DeLuca obtained $1,000 from companion Subside Buck to begin “Pete’s Super Submarines” in Bridgeport, Connecticut, and in the next year, they framed Specialist’s Partners Inc. to manage operations of the eateries as the establishment extended. The holding organization gets its name from DeLuca’s objective to acquire enough from the business to pay educational cost for therapeutic school, and in addition Buck’s having a doctorate in material science. Specialist’s Partners is not associated with, nor supported by, any restorative association. In 1968, the sandwich shop was renamed “Subway”.
In 2004, Subway started opening stores in Walmart supercenters and outperformed the quantity of McDonald’s areas inside U.S. Walmart stores in 2007. Since 2007, Subway has reliably positioned in Business person magazine’s Main 500 Establishments list. It positioned #2 in 2012. It likewise positioned #2 on the “Quickest developing Establishment” and “Worldwide Establishment” records. Toward the finish of 2010, Subway turned into the biggest fast food chain around the world, with 33,749 eateries – 1,012 more than McDonald’s.
In 2016, Subway reported another logo for the establishment, which will be executed in 2017.  A profoundly refreshed “eatery without bounds” idea is expected to be taken off all around from 2017 onwards.
A Subway Club 6″ sandwich
Subway’s center item is the submarine sandwich (or “sub”). Notwithstanding these, the chain additionally offers wraps, plate of mixed greens, and heated products (counting treats, doughnuts , and biscuits ). While some menu things change amongst nations and markets, Subway’s overall mark sub assortments include:
B.L.T, Chicken, Chicken Pizziola, Chicken Teriyaki, Chicken Tikka, Chipotle Chicken, Ham, Italian B.M.T., Meatball Marinara, Broiled Chicken,Spicy Italian, Steak and Cheddar, Subway Club, Subway Melt,Tuna, Turkey, Veggie Delite, Veggie Patty.
Subway’s smash hit sandwich, the B.M.T., contains pepperoni, salami, and ham. The name initially remained for Brooklyn Manhattan Travel, yet now remains for “Greater, Meatier, More delicious”. Subway likewise offers breakfast sandwiches, English biscuits, and flatbread. In 2006, “individual pizzas” appeared in some US markets. These are made to request (like their subs) and warmed for 85 seconds. Breakfast and pizza things are just accessible in a few stores. In November 2009, Subway marked an arrangement to serve solely Seattle’s Best espresso as a major aspect of their breakfast menu in the US.
A 2009 Zagat review named Subway the best supplier of “Solid Alternatives” (in the “Super Chain” class). Subway was additionally first in “Top Administration” and “Most Famous” rankings. It set second in “Top In general”, behind Wendy’s.
Subway’s menu changes between nations, most essentially where there are religious necessities identifying with the meats served.
Principal genuine Subway eatery in the United States of America was opened in 2006, in a suburb of Cleveland, Ohio in the Mandel JCC of Cleveland. Previous Subway representative Jared Fogle went to the opening. A public statement expressed, “With slight changes, for example, no pork-based items, and the utilization of soy-based cheddar item, the menu is basically indistinguishable to that of some other Subway eatery.” Different openings soon took after, quickly making Subway one of the biggest U.S. fit eatery networks.
At their pinnacle, 12 kosher Subway areas were open in the U.S, including Kansas City and 5 in New York. Starting at 2011, just five remain Cleveland, Miami, Los Angeles and two stores in Maryland. Franchisees who fizzled noticed an absence of support from the parent area in publicizing, higher expenses of genuine sustenance and supervision, the failure to stay open on Saturdays, and that clients who don’t keep legitimate lean toward the first menu and costs.
Subway opened its first eatery in India in 2001 in New Delhi. Subway eateries in India don’t serve meat and pork items in concession to Hindu and Muslim convictions individually and offer a stretched out veggie lover go because of the huge number of vegans in the nation.
In 2011, Subway presented sans gluten bread and brownies to a few areas in Texas. It additionally cut the salt substance of its sandwiches by 15 percent. In the Assembled Kingdom and Ireland, Subway has diminished salt substance over its whole range by 33% and has resolved to further decreases, in accordance with government targets. Subway’s scope of “Low Fat” subs is supported by the philanthropy Heart Exploration UK.
Subway is the second-greatest fast food publicist in the Unified States, behind just McDonald’s. It burned through $516,000,000 on a quantifiable marketting in 2011.
It utilizes the publicizing trademark “Eat fresh”, and concentrates on how their sandwiches are produced using naturally prepared bread and new fixings, before clients to their correct particulars, by representatives whom Subway calls “Subway Sandwich Artist”.
In November 2007, Subway’s US plugs included the toon character Peter Griffin (from Family Fellow) advancing its new Subway feast sandwich. Subway has likewise utilized “moment win” amusements, in light of the game Scrabble .
Subway ran an item arrangement crusade in the US television arrangement Chuckl since its first season. As evaluations dwindled in the second season, a crusade to “spare Chuck” was propelled for fans, urging them to buy a foot long sub from Subway on April 27, 2009, the date of the season finale. Tony Pace, Subway’s advertising officer, called it the best item arrangement the eatery network has done “in quite a long while.” To observe National Sandwich Day on November 3, 2015, Subway offered a purchase One sandwich, Give One sandwich free advancement.
Step by step instructions to Get Subway Franchise
Business Depiction : Subway Eateries offer foot-long and different sandwiches , plates of mixed greens , and other sustenance things from a retail location. Average startup cost ranges between $20,000 – $30,000.
Establishment Offer: Subway offers qualified buyers the privilege to set up and work, from a solitary area, a retail foundation get ready and offering foot-long and forte sandwiches, servings of mixed greens and other nourishment things. Extra establishment alternatives include: non – customary areas, satellite areas, group improvement program areas, school lunch program areas, airplane terminal areas, amusement stop areas, and national stop areas. A Selective Region Improvement Program is likewise accessible.
Monetary Help : Subway offers a hardware renting program accessible to all franchisees in the united states of America States ( excluding Puerto Rico, but rather including Guam) , aside from the individuals who possess a current eatery that is not in consistence with the Operations Manual. Subway regards the gear rent to be a genuine rent and not a financing lease. Subway offers to back $ 10, 000 of the underlying establishment charge under its minority credit program, for qualified franchisees obtaining their first establishment at the full expense in the USA just. Subway likewise offers fund programs for rented space and development programs through Subway offshoots, and may advance cash to franchisees regarding a Subway eatery. Subway may ensure a credit for a franchisee regarding a Subway eatery and may also changes or dispense with these advance projects and hardware renting program with no earlier notice to franchisees.
Training and Assistance: All people who consent to the Establishment Arrangement must go to and finish the Overall Preparing program at Subway home office to the franchisor’s fulfillment. Consummate participation and a review of 80 % on all pre – imperative web – based instructional classes, in classroom tests and the last test of the year, and additionally a passing evaluation on the in-store segment of the course are required to finish the instructional class to Subway’s fulfillment. Classroom work represents roughly 62 hours, and franchisees will have around 33 hours of on – the – work preparing at close-by eateries. Franchisees will be advised when extra courses get to be distinctly required.
Region: A selective domain won’t be allowed to the franchisee, unless the franchisee is under the establishment assertion for an elite territory advancement program.
Term of Understanding and Renewal: The length of the establishment term is 20 years, except for the School Lunch program with a term of 5 years. The establishment will consequently renewed for extra 20 year time frames, unless either party picks not to reestablish. The renewal term for the School Lunch projects is 5 years. Subway has the privilege to decline restoration if the franchisee is not in full consistence.
Commitments and Limitations: The franchisee is not obliged to actually oversee the Subway eatery, however they should go to and finish the preparation program. The individual assigned to effectively work in the eatery as the Individual in Control must get to be distinctly confirmed by finishing the Individual in Control program. It is prescribed that the franchisee dedicate a considerable measure of time to the diversified business.