Subway Franchise DF July 28, 2012 Subway was founded by Fred DeLuca and Peter Buck in Bridgeport, Connecticut in 1965. At the time the name was Pete’s Super Submarines. The loan that Deluca received from Buck was for the sum of $1000. 00. Having the submarine shop open for a few years the founders changed the name to Subway this is when they began the franchise in 1974. To begin in the Subway franchise the fee is $15,000. 00. There is an ongoing royalty fee of 8% and the term of the franchise agreement is 20 years which is renewable. “65% of all franchisees own more than one unit.
Number of employees needed to run franchised unit: 8 – 12. Absentee ownership of franchise is NOT allowed. (100% of current franchisees are owner/operators)” [ (Subway, 2012) ]. Training is provided at the Subway headquarters which is a time period of two weeks in Australia, China, Germany, India, Montreal, Canada, and Miami, Florida. Subway is also ranked number two in the franchise rankings so this makes it a good franchise to consider looking into and opening in any area. For the support part of the business there are newsletters, meetings, toll-free phone line, grand opening, and internet.
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The marketing support includes; co-op advertising, ad slicks, national media, and regional advertising. One of the best ways to get the word out that there is a new Subway in town is looking at the local store marketing system to find out what actually works and does not work. Something to really think about is what are the pros and cons of starting a franchise. With the town I reside in there are more than enough opportunities to open any new business. The town I live in is a college town and each year Murray State adds more and more students.
The best business that would do well in Murray, Kentucky is to have another Subway. The Subway that is in town brings in so much business on a daily basis that it is hard to even get in the parking lot at times. The best place for the Subway franchise is on the other side of town due to the fact that there are not any places to eat that are close to the college. In Murray location is the key to any business which is not a hard thing to do considering it is a rather small town that is growing in a startling manner.
I would consider getting the money together to open a Subway in Murray, Kentucky because of the reputation of the business and the area in which the Subway would be located is growing by leaps and bounds. Subway has come a long way since 1965 and it will be around for many years to come so I would be happy to say that I had a franchise of this caliber to run and keep the name of Subway going strong. References Subway. (2012). Retrieved July 27, 2012, from entrepreneur: http://www. entrepreneur. com/franchises/subway/282839-0. html