Subway

Submarine sandwich restaurant chain
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
Year

2008
2007
2006
2005
2004
U.S. Franchises
21,344
21,006
20,265
18,678
17,931
Canadian Franchises
2,306
2,264
2,165
2,062
1,996

Foreign Franchises
5,149
4,659
3,767
2,929
2,554
Company
Owned
0
0
0
1
1

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-HouseThird Party
Franchise FeeYesYes
Startup CostsNoYes
EquipmentYesYes
InventoryNoNo
Accounts ReceivableNoNo
PayrollNoNo
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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