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Subway Franchise

Subway Franchise

Subway Franchise

Eat, move and do good with us

Huge investments are made in the fast food franchise businesses due to its consistent growth over the past years. Sandwich, being one of the highly preferred meals by the consumers, is expected to grow consistently over the years owing to urbanisation. High demand always guides the way to success for any business. Therefore, with the help of a big brand name like ‘SUBWAY’, owning a sandwich franchise business would be an excellent way for an entrepreneur to begin.

Subway Journey

The first SUBWAY restaurant was opened in the city of Bridgeport, USA, by Fred DeLuca and Dr.Peter Buck in 1965, which was later incorporated in the name of Doctor’s Associates Inc. at present, Doctor’s Associates operates the Subway chain of sandwich shops, the world’s largest restaurant chain, boasting more than 40,000 locations in more than 100 countries.

Since its founding, the SUBWAY franchise system has experienced phenomenal growth. All Subway restaurants are franchised and in most years, about 70% of new franchise locations are purchased by existing owners because of their trust on the Subway brand.

Vision & Mission

The vision of the company is to be the No.1 Quick Service Restaurant chain in the world.

The mission of the company is to delight every customer through their fresh, delicious made-to-order sandwiches so that they share an exceptional experience with their friends.

Why choose Subway?

The Subway chain is the largest and the most popular restaurant chain in the world with more locations than any other restaurant. For young entrepreneurs, starting a Subway franchise is a proven business with a low start-up cost. In the fast food category, subway ranks number 1 in services and healthy option.

Eligibility

Subway franchises are proven business with global brand recognition and anyone who desires to be a part of it should;-

  • Possess an entrepreneurial spirit
  • Be committed to building a successful business
  • Enjoy working with people
  • Be ready to learn new skills and for an exciting new challenge

In fact, many SUBWAY customers have become franchise owners simply because they believe in the product and have passion for the same.

Franchisee Responsibilities

A Subwfranchisesee is responsible for the following:

  • Initial franchise fee
  • Finding locations
  • Leasehold improvements and equipment
  • Hiring employees and operating restaurants
  • Paying 8% royalty to the company and a fee into the advertising fund

Subway franchises pay 12.5% every week (gross sales minus the sales tax); 8% goes toward the franchise royalties and 4.5% goes towards advertising.

Franchise Location Details

Generally, the most important factors for performance are the location of the franchise and how well it is run.

There are traditional and nontraditional locations for Subway franchises.

A traditional restaurant is the one in a shopping center or on the street corner. A non-traditional restaurant is a store located in an airport, hospital, truck stop, college, bus terminal, or other sites associated with another business. The non-traditional locations are usually owned by existing franchises that run successfully.

Once becoming a franchise, the site selection team will assist in identifying the location.

Franchise Capital Requirements

The complete investment will depend on the location, size, and the extent of renovations required.

A lower cost restaurant is one that would require fewer leasehold improvements, less seating and fewer equipment expenditures.

Moderate and higher costs restaurants may require extensive interior renovations, extensive seating and additional equipment.

The Capital requirements are given below in the table

Initial Franchise Fee

 

INR 625,000

 

INR 625,000INR 625,000Lump sum upon signing Franchise Agreement
Leasehold Improvements

600,000

 

850,000

 

1,380,000

 

As incurred Pro rata

during construction

Equipment

 

3,000000

 

 

4,060,000

 

 

5,964,000

 

Lump sum when you place order
Security System (Not including monitoring costs)

40,000

 

60,000

 

60,000

 

Lump sum when you place order
Freight Charges (Varies by location)45,00050,000155,000Lump sum when you place order or upon delivery
Outside Signs75,000

75,000

 

75,000Lump sum when you place order
Opening Inventory

120,000

 

170,000250,000Lump sum within one week of opening
Insurance25,00028,00035,000As incurred before opening
Supplies

20,000

 

25,000

 

50,000

 

As incurred before opening
Training Expenses (Including travel and lodging)

100,000

 

100,000

 

100,000

 

As incurred during training

 

Legal & Accounting

40,000

 

50,000

 

70,000

 

Lump sum before opening

 

Opening Advertisement

 

80,000

 

100,000

 

150,000

 

Lump sum around opening

 

Miscellaneous Expenses (Business licenses,

utility deposits, small equip. & surplus capital)

 

50,000

 

50,000

 

200,000

 

As incurred as required

 

Additional Funds 3 months

 

350,000

 

350,000

 

500,000

 

Lump sum as required

 

Estimated Total Investment

 

INR 5,370,000

 

INR 7,043,000

 

INR 10,414,000

 

 

Real Property

 

200,000

 

450,000

 

800,000

 

Lump sum upon signing intent

to Sublease

Steps to Open Subway Franchise:

Steps to open a franchise restaurant are given in brief.

  1. Request a franchise brochure
  2. Submit Franchise Application
  3. Meet Local Development Agent
  4. Review Disclosure Document
  5. Conduct Local Research
  6. Secure Financing
  7. Sign Franchise Agreement
  8. Attend Training
  9. Secure a Location and Build Your Restaurant
  10. Celebrate Grand Opening

Note: Average time to an opening of Subway Franchise is about 7 months.

Company Provisions

Before Opening

Training

The franchise owner or manager can take part in the intensive two-week program offered by the company.

Restaurant/Store design

The franchisees will be provided with floor plans for their specific location.

Décor

The SUBWAY décor integrates the look of natural building materials – brick, clay, stone -into the stores and conveys a warm welcome to the customers. The “Fresh Forward” décor will be the required décor and equipment package for all new restaurants and relocations. The cost of construction and all décor elements and the cost of its installation in the restaurant shall be at your sole expense. This estimate does not include costs to ship required décor elements.

 Site selection

Assistance in evaluating the location for the business is rendered.

Equipment ordering

Guidance on ordering the equipment package for timely delivery will be given.

After Opening

Operations manual

The in-depth manual of the Subway restaurant covers a range of topics that are necessary to run the business.

Field support

The local representative will help you get started on operational matters.

Franchise services

A coordinator will serve as the main contact person, who is just a phone call or e-mail away.

Research & Development

The Subway franchise executive chef, baking specialists, staff nutritionist, and product development team continually strive to make the food even better. The Subway “Sandwich Artists” create sandwiches on customer’s varied selection

Continuing Education

Regular newsletters, e-mails and voice-mails, DVDs and additional learning tools are also available.

 Technical Support

Excellent support systems are made available to SUBWAY franchisees. Support is provided before and after you open your store. As soon as joining the SUBWAY team, access to formulas and operational systems are provided.

Development Agent’s Role

A Development Agent is an independent contractor who sees the “big picture”. When approved, the DA develops a territory by helping franchisees own and operate SUBWAY restaurants in that territory.

Qualities of a successful SUBWAY Development Agent:

  • Excellent leadership capabilities
  • Vision for the future of the SUBWAY brand and restaurant development
  • Passion for the SUBWAY brand
  • Local market knowledge
  • Excellent communication skills
  • Determination to lead a successful territory
  • Excellent organizational skills

Attend a Subway Franchise Seminar:

To meet your own Development Agent who can discuss franchise opportunities with you at your convenience, visit the website to attend the online seminar.

STEP 1: Apply –

Simply complete the application and mail it to Franchise Sales at Franchise World Headquarters, LLC. A disclosure document will be sent to you that includes more information about the franchisor.

STEP 2: Research

Talk to our franchise owners to learn more about us.

STEP 3: Join the team

Once you have finished your investigation and have secured approval to become a SUBWAY franchise owner.

Post by Marlin Priya

IndiaFilings is India's largest online compliance services platform dedicated to helping people start and grow their business, at an affordable cost. We were started in 2014 with the mission of making it easier for Entrepreneurs to start their business. We have since helped start and operate tens of thousands of businesses by offering a range of business services. Our aim is to help the entrepreneur on the legal and regulatory requirements, and be a partner throughout the business lifecycle, offering support at every stage to ensure the business remains compliant and continually growing.

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