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Subway Restaurants
 

For more than 40 years, SUBWAY RESTAURANTS has been offering entrepreneurs an opportunity to build and succeed in their own business through a proven, well-structured franchise system. SUBWAY is the world's largest submarine sandwich franchise and the largest restaurant chain in N. America. In 2006, Entrepreneur Magazine again chose SUBWAY as the overall number one franchise opportunity, making it the 14th time in the past 18 years. Over 25,000 independently-owned and operated location in 83 countries.

Franchisor Background

Year Established:

  1965

Franchising Since:

  1974

IFA Member



CFA Member



Operating Units:

Franchised Units:36,000 100%  
Company-Owned Units:0 0%  
 ______ _____  
Total Operating Units:36,000 100%  
 

Geographic Distribution:

U.S.:27,171 82.3% In 50 States
Canada:2,151 6.5% In 12 Canadian Provinces
International:3,678 11.1% In 0 Foreign Countries
 ______ _____  
Total:33,000 100%  
 

North America:

States/Provinces with the largest number of operating units:
DensityUnits    
1. California0
2. Florida0
3. Texas0

Registered in Following Registration States:

   California, Florida, Hawaii, Illinois, Indiana, Maryland, Michigan, Minnesota, New York, North Dakota, Oregon, Rhode Island, South Dakota, Virginia, Washington, Wisconsin, District Of Columbia

Financial Requirements

Investment:

Minimum Net Worth:$Not Required
Cash Investment:$Not Required
Total Investment:$116-300K
Average Total Investment:$208K
 

Fees:

Initial Franchise Fee:$15K (10K Intl.)
Average Franchise Fee:$15K
On-Going Royalty:8%
Average Royalty:8%
Advertising Fee:4.5%

Average Number of Employees:

   2-3 Full-time, 6-10 Part-time

Space Needs (in square footage):

   300-2,000

Preferred Sites:

   Free-standing Building, Storefront, Strip Center, Regional Mall

Other Sites:

   C-Store

Encourage Conversions?

   Not Applicable

Earnings Claims Provided?

   No

Listed in the SBA Registry?

   No

Support and Training

International Franchise Association:Yes
Canadian Franchise Association:Yes
Franchisee Association/Member:Yes, Member
Size of Corporate Staff:700
Site Selection Assistance?Yes
Lease Negotiation Assistance?Yes
Financial Assistance?Yes, Direct
 

Marketing Support:

Co-Op Advertising:No
National Advertising:No
Regional Advertising:No
Local Advertising:No
Marketing Materials:None Specified
Additional Services:None Specified
Other Marketing Support:None Specified
 

On-Going Support:

Central Data Processing:Included in Fees
Central Purchasing:Included in Fees
Field Operation Evaluation:Included in Fees
Field Training:Included in Fees
Initial Store Opening:Included in Fees
Inventory Control:Included in Fees
Franchisee Newsletter:Included in Fees
Regional or National Meetings:Included in Fees
800 Telephone Hotline:Included in Fees
 

Training:

1. Milford, CT2 Weeks
2. Miami, FL2 Weeks
3. Montreal, PQ2 Weeks
 

Franchisee Qualifications

Ranked from 1 (unimportant) to 5 (important):
 
Financial Net Worth:5
General Business Experience:4
Specific Industry Experience:3
Formal Education:4
Psychological Profile:3
Personal Interview(s):3

Minority Representation

Units Owned by Minorities:

African-American:N/A
Asian-American:N/A
Hispanic:N/A
Native American:N/A
Other:N/A
Specific Minority:A minority loan program has been established in which the company will finance $14,000 of the initial franchise fee.

Terms of Contract

Term of Initial Contract:20 Year(s)
Term of Renewal Period:20 Year(s)
Passive Ownership:Not Allowed
Area Development Agreements?Yes, for 20 Year(s)
Sub-Franchising Contracts?No
Franchisees Allowed to Expand Within Territory?Yes

Expansion Plans

Projected New Units Over Next 12 months:

   1,000+
U.S.:Yes, All United States
Canada:Yes, All Canada
Overseas:Yes, All Countries
 
 
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