Subway Franchise Information and Costs
Sandwich shops are everywhere, but very few of these establishments carry reputable brand recognition such as Subway. In 1965, two young men opened a sandwich shop with just a few thousand dollars as investment. Both men hoped to earn enough money from this venture to pay their tuition fees for college. Just like other businesses, the sandwich shop struggled during the first couple of years, but the sales somehow took off after some time. That was when they changed the name of the shop from "Pete's Super Submarines" to "Subway". Subway franchise opportunities were introduced in 1974, and these now rank at the top of almost every franchise service ratings in the market. Subway excels at categories like franchisee satisfaction, best training program, and customer loyalty. As a successfully created niche in the sandwich industry, Subway continues to develop its menu; its fresh and delicious salad selections provide a remarkable share in the company's overall revenue. The owners' mere thousand-dollar initial investment surely paid off very well.
Subway Franchise Information
As of today, there are about 21,000 Subway franchises in the United States alone, 2,300 locations in Canada, and more than 5,500 in 80 other countries around the world. The parent company does not own any Subway franchises, which means that franchisees no longer compete with the home office for market share or sales. Based on the number of franchisee applications that the company receives each year, Subway proves to be a popular option among aspiring and determined entrepreneurs. All successful franchisee applicants residing in the United States receive two weeks extensive training at Subway's headquarters in Connecticut. Outside the country, training facilities are available in Canada, India, China, Australia, and Germany. Subway franchisees learn operational methodology, basic management skills, as well as business concepts in these training facilities. A Subway franchise acts as a training ground for owners to perfect the role of a sandwich artist. Sixty five percent of all Subway franchise owners manage more than one location, with at least six to ten staff for each unit. If you want additional franchise information, you can get it at the official Subway website.
Continuous Support for Owners of Subway Franchises
All new owners of a franchise receive continuous training. This is inclusive in the franchise fee. The training covers field operation evaluations, monthly newsletters, opening assistance, as well as customer service support. Marketing and promotion plays a very important role in a Subway franchise. Its ad campaigns are truly remarkable and memorable that they become part of the social fabric. When buying a Subway franchise, you take advantage of the co-op advertising program, regional coupon mailing, and national marketing strategies that specifically target customers in a particular location.
Subway Franchise Cost and Fees
All franchise opportunities you find in the market today require an upfront payment to franchisors. Subway is no exception to this fact, but compared to other franchises, the Subway franchise fee is quite reasonable. To buy a franchise location, you need to pay an initial franchise fee of only $15,000. The company estimates a total investment that ranges between $79,000 and $240,000. Differences in figures are due to the varied real estate prices in different states and countries. You need to have a net worth of at least $30,000 and a cash liquidity of $80,000 to $300,000. The Subway Corporation offers in-house financing to cover the Subway franchise fee as well as the equipment you need to purchase. Third party financing is also available if you need additional capital for start-up costs.