Year began: 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.
|
325 Bic Dr. Milford, CT 06460
Phone: (800)888-4848/(203)877-4281
Fax: (203)783-7329
| Franchisor is a privately-held company with 650 employee(s); 20 employee(s) in franchise department.
Franchisee Association
North American Association of Subway Franchisees
Contact: www.naasf.org
|
Franchise Growth
Year2008
2007
2006
2005
2004
U.S. Franchises21,344
21,006
20,265
18,678
17,931
Canadian Franchises2,306
2,264
2,165
2,062
1,996
Foreign Franchises5,149
4,659
3,767
2,929
2,554
Where Seeking Franchisees
Nationwide
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 & Fees
Total investment: $80K-310K
Express/kiosk option available
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
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 & Support
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
Rankings in Entrepreneur magazine 2004-2008
Franchise 500® rank:#2 (2008); #1 (2007); #1 (2006); #1 (2005); #1 (2004);
Ranked #1 in category in:
2008; 2007; 2006; 2005; 2004;
Fastest-Growing Franchises:#3 (2008); #1 (2007); #1 (2006); #2 (2005); #1 (2004);
America's Top Global Franchises:#1 (2008); #1 (2007); #1 (2006); #1 (2005); #1 (2004);
Last Updated: 8/27/2008 12:00:00 AM
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