#2
At a Glance
Products & Services: Submarine sandwiches & salads
Number of Locations: 34,906
Total Investment: $84.8K - 258.8K
Founded: 1965
Began Franchising: 1974
Private Owned
About Subway
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.Franchise Units
| Year | U.S. | Canadian | International | Company Owned |
| 2011 | 24,321 | 2,656 | 7,929 | 0 |
| 2010 | 23,411 | 2,542 | 7,235 | 0 |
| 2009 | 22,525 | 2,436 | 6,484 | 0 |
| 2008 | 21,685 | 2,355 | 5,572 | 0 |
Where Seeking Franchisees: Franchisor is seeking new franchise units worldwide.
Startup Costs, Ongoing Fees and Financing
Total Investment: $84,800 - $258,800
Franchise Fee: $15,000
Ongoing Royalty Fee: 8%
Term of Franchise Agreement: 20 years, renewable
Franchise Fee: $15,000
Ongoing Royalty Fee: 8%
Term of Franchise Agreement: 20 years, renewable
Financial Requirements
Net Worth: $30,000 - $90,000
Liquid Cash Available: $80,000 - $310,000
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).| Financing Type | In-House | Third Party |
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How This Franchise Supports Franchisees
Training: 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