Subway

At a Glance

Products & Services: Submarine sandwiches & salads

Number of Locations: 38,965

Total Investment: $85.2K - 260.35K

Founded: 1965

Began Franchising: 1974

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 98 countries, with locations in traditional and nontraditional sites alike.

Franchise Units

Year	U.S.	Canadian	International	Company Owned
2013	25,766	2,896	10,303	0
2012	25,370	2,815	9,014	0
2011	24,722	2,717	8,481	0
2010	23,411	2,542	7,235	0
2009	22,525	2,436	6,484	0

Where Seeking Franchisees: Franchisor is seeking new franchise units worldwide.

Startup Costs, Ongoing Fees and Financing

Total Investment: $85,200 - $260,350
Franchise Fee: $15,000
Ongoing Royalty Fee: 8%
Term of Franchise Agreement: 20 years, renewable

Financial Requirements

Net Worth: $80,000 - $310,000
Liquid Cash Available: $30,000 - $90,000

Operations

Number of employees needed to run franchised unit: 8 - 12. Absentee ownership of franchise is allowed. (100% of current franchisees are owner/operators).

Financing Type	In-House	Third Party
Franchise Fee
Startup Costs
Equipment
Inventory
Accounts Receivable
Payroll

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, Lease Negotiation

Marketing Support: Co-op advertising, Ad slicks, National media, Regional advertising,

Other marketing support: Local store marketing