Subway

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.

Address: 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 Units

Year	U.S. Franchises	Canadian Franchises	Foreign Franchises	Company Owned
2009	22,525	2,436	6,484	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

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.

Total investment: $84,300 - $258,300
Franchise fee: $15,000
Ongoing royalty fee: 8%
Term of agreement: 20 years, renewable


Express/kiosk option available

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: $30,000 - $90,000
Cash liquidity requirement: $80,000 - $310,000
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

• 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

Franchise 500® rank:
#1 (2010); #1 (2009); #2 (2008); #1 (2007); #1 (2006);

Fastest-Growing Franchises:
#2 (2010); #2 (2009); #3 (2008); #1 (2007); #1 (2006);

America's Top Global Franchises:
#1 (2010); #1 (2009); #1 (2008); #1 (2007); #1 (2006);