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Subway

2014 Franchise 500
#3
At a Glance

Products & Services: Subs, salads

Number of Locations: 42,210

Total Investment: $85.7K - $262.9K

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
2014 26,688 3,118 12,404 0
2013 26,240 2,962 10,565 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
Where Seeking Franchisees: Franchisor is seeking new franchise units worldwide.
Direct Capital

Startup Costs, Ongoing Fees and Financing

Total Investment: $85,700 - $262,850
Franchise Fee: $15,000
Ongoing Royalty Fee: 8%
Term of Franchise Agreement: 20 years, renewable
Veteran Incentives: Franchise fee waived if opening on a military/government location; 50% off franchise fee if opening on non-government location but receiving government financing
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).
Direct Capital
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

Franchise Ranking History

Franchise 500®: #3 (2014), #2 (2013), #2 (2012), #9 (2011), #1 (2010),
Fastest-Growing: #1 (2014), #1 (2013), #2 (2012), #3 (2011), #2 (2010),
America's Top Global: #2 (2013), #2 (2012), #7 (2011), #1 (2010),

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