Subway
Submarine sandwiches & saladsBackground
Founded: 1965 Franchising since: 1974
In 1965, 17-year-old Fred DeLuca and family friend Peter Buck opened Pete's Super Submarines in Bridgeport, Connecticut. With a loan from Buck for only $1,000, DeLuca hoped the tiny sandwich shop would earn enough to put him through college. After struggling through the first few years, the founders changed the company's name to Subway and began franchising in 1974. Offering a fresh, healthy alternative to fast-food restaurants, Subway has franchises throughout the United States and in several countries, with locations in traditional and nontraditional sites alike.
Franchisor is a privately-held company with 650 employee(s); 20 employee(s) in franchise department.
Franchise Growth
Where Seeking Franchisees
In the U.S. Alaska, Alabama, Arkansas, Arizona, California, Colorado, Connecticut, Delaware, Florida, Georgia, Hawaii, Iowa, Idaho, Illinois, Indiana, Kansas, Kentucky, Louisiana, Massachusetts, Maryland, Maine, Michigan, Minnesota, Missouri, Mississippi, Montana, Nebraska, North carolina, North dakota, New hampshire, New jersey, New mexico, Nevada, New york, Ohio, Oklahoma, Oregon, Pennsylvania, Rhode island, South carolina, South dakota, Tennessee, Texas, Utah, Virginia, Vermont, Washington, Wisconsin, West virginia, Wyoming
Worldwide
Special Programs
Subway supports numerous community organizations, including the American Cancer Society, Habitat for Humanity, Girl Scouts of America and the National Foundation for Teaching Entrepreneurship.
In 1965, 17-year-old Fred DeLuca and family friend Peter Buck opened Pete's Super Submarines in Bridgeport, Connecticut. With a loan from Buck for only $1,000, DeLuca hoped the tiny sandwich shop would earn enough to put him through college. After struggling through the first few years, the founders changed the company's name to Subway and began franchising in 1974. Offering a fresh, healthy alternative to fast-food restaurants, Subway has franchises throughout the United States and in several countries, with locations in traditional and nontraditional sites alike.
|
325 Bic Dr. Milford, Connecticut 06460 |
Phone: (800)888-4848/ (203)877-4281
Franchisee Association
North American Association of Subway Franchisees |
Franchisor is a privately-held company with 650 employee(s); 20 employee(s) in franchise department.
Franchise Growth
| Year | U.S. Franchises | Canadian Franchises | Foreign Franchises | Company Owned |
| 2009 | 22525 | 2436 | 6484 | 0 |
| 2008 | 21,685 | 2,355 | 5,572 | 0 |
| 2007 | 21,006 | 2,264 | 4,659 | 0 |
| 2006 | 20,265 | 2,165 | 3,767 | 0 |
| 2005 | 18,678 | 2,062 | 2,929 | 1 |
Where Seeking Franchisees
In the U.S. Alaska, Alabama, Arkansas, Arizona, California, Colorado, Connecticut, Delaware, Florida, Georgia, Hawaii, Iowa, Idaho, Illinois, Indiana, Kansas, Kentucky, Louisiana, Massachusetts, Maryland, Maine, Michigan, Minnesota, Missouri, Mississippi, Montana, Nebraska, North carolina, North dakota, New hampshire, New jersey, New mexico, Nevada, New york, Ohio, Oklahoma, Oregon, Pennsylvania, Rhode island, South carolina, South dakota, Tennessee, Texas, Utah, Virginia, Vermont, Washington, Wisconsin, West virginia, Wyoming
Worldwide
Special Programs
Subway supports numerous community organizations, including the American Cancer Society, Habitat for Humanity, Girl Scouts of America and the National Foundation for Teaching Entrepreneurship.
Costs and Fees
|
Total investment: $78.6K-238.3K Franchise fee: $15K |
Ongoing royalty fee: 8% Term of agreement: 20 years, renewable |
Type of Financing Available
| In-House | Third Party | |
| Franchise Fee | Yes | Yes |
| Startup Costs | No | Yes |
| Equipment | Yes | Yes |
| Inventory | No | No |
| Accounts Receivable | No | No |
| Payroll | No | No |
Third-party financing source(s): Edlo Leasing, Banco Popular, Textron
Qualifications
Net worth requirement: $30K-90K
Cash liquidity requirement: $80K-310K
Business Experience:
- General business experience
Operations
- 65% of all franchisees own more than one unit
- Number of employees needed to run franchised unit: 6 - 10
- Absentee ownership of franchise is NOT allowed. (100% of current franchisees are owner/operators)
Training and Support
Training
Ongoing Support
Marketing Support
Other marketing support
- Available at headquarters: 2 weeks
- Training available in Australia, China, Germany, India, Montreal, Canada & Miami, FL
Ongoing Support
- Newsletter
- Meetings
- Toll-free phone line
- Grand opening
- Internet
- Security/safety procedures
- Field operations/evaluations
- Purchasing cooperatives
Marketing Support
- Co-op advertising
- Ad slicks
- National media
- Regional advertising
Other marketing support
- Local store marketing
Rankings
Franchise 500® rank:
#1 (2009); #2 (2008); #1 (2007); #1 (2006); #1 (2005);
Ranked #1 in category in:
2009; 2008; 2007; 2006; 2005;
Fastest-Growing Franchises:
#2 (2009); #3 (2008); #1 (2007); #1 (2006); #2 (2005);
America's Top Global Franchises:
#1 (2009); #1 (2008); #1 (2007); #1 (2006); #1 (2005);
#1 (2009); #2 (2008); #1 (2007); #1 (2006); #1 (2005);
Ranked #1 in category in:
2009; 2008; 2007; 2006; 2005;
Fastest-Growing Franchises:
#2 (2009); #3 (2008); #1 (2007); #1 (2006); #2 (2005);
America's Top Global Franchises:
#1 (2009); #1 (2008); #1 (2007); #1 (2006); #1 (2005);