Subway Franchise Business Description: Subway Restaurants sell foot-long and other sandwiches, salads, and other food items from a retail store.
Franchise Offer: Subway offers qualified purchasers the right to establish and operate, from a single location, a retail establishment preparing and selling foot-long and specialty sandwiches, salads and other food items. Additional franchise options include: non-traditional locations, satellite locations, community development program locations, school lunch program locations, airport terminal locations, theme park locations, and national park locations. An Exclusive Area Development Program is also available.
Why Choose SUBWAY franchise opportunity?
Own the #1 franchise*“Subway® restaurant franchises are a proven business with global brand recognition. Start your journey to ownership today.”
Becoming a Subway Franchisee
Subway offers regular free seminars where those interested in becoming a franchisee can meet Subway representatives and is also a regular attendee at franchising trade shows and events. The Subway franchising website provides detailed information about how to apply to become a Subway franchisee and also lists existing franchises that are up for sale.
The Subway training course is two weeks long and teaches business concepts, methods of operation, and basic management skills.
The training time is spent in a classroom and on-site at a local Subway franchise for a “hands-on” experience. At the end of the two weeks, each potential franchisee must pass an exam to become a Subway franchisee. A total of 8 to 12 employees is required to run a Subway franchise.
Support offered by Subway to its franchisees includes purchasing co-ops, grand opening support, a toll-free line, field support, meetings, newsletters, and the internet.
Since its founding the SUBWAY® franchise system has experienced phenomenal growth, and has become the #1 Quick Service Restaurant chain in the world. In most years, about 70% of new franchises are purchases by existing owners.
The SUBWAY® décor integrates the look of natural building materials – brick, clay, stone – into the stores and conveys to customers that SUBWAY® locations are warm and inviting family dining destinations.
SUBWAY® “Sandwich Artists” create customers’ sandwiches on a varied selection of daily baked gourmet breads. With the option of many ingredients, the sandwiches are customized with an array of meats, cheeses, vegetables, and lastly topped off with unique select sauces. In addition, many food flavors are brought out by toasting the sandwiches to perfection, just the way a customer wants.
Products You Will Be Proud To Serve
The SUBWAY® franchise offers your customers many great options to eat a fresh meal, fast. Think about your customer base and all the potential consumers who patronize your business. Wouldn’t the quality of the SUBWAY® products appeal to those consumers?
SUBWAY FRESH FITTM Menu
The nutritional value of our food is very important. The SUBWAY FRESH FITTM menu is low in saturated fat and cholesterol and is trans fat free.
Subway Franchise key indicators :
Subway continues to be a top-performing franchise. If you want to purchase your own Subway franchise, there are a few things to know before you jump in. You’ll be required to make an initial investment and meet their net worth and liquid cash requirements. These costs will vary depending on when and where you open your franchise. There’s also an upfront franchise fee and royalty fees based on sales that you’ll need to factor in.
|Type of Fee||Amount|
|Royalty||8% of total gross sales.|
|Advertising||4.5% of total gross sales.|
|Additional Funds||Established by franchisees.|
|Local Advertising||Established by franchisees.|
|Grand Opening Advertising||$2,000|
|Fees for Unpaid Balances (when payment is more than one week late)||Interest charge of 12% (or maximum allowed by law where the restaurant is located) per annum on amount owed by franchisee.|
|Fees for Unpaid Balances (when payment is more than one week late)||Late fee of 10% (or maximum rate allowed by law where the restaurant is located) per annum of amount owed by franchisee may be charged.|
|Fees for Unpaid Balances (when the franchisee defaults on payments because of a bank change without notice)||$50|
|Fees for Unpaid Balances (bounced check or pre-authorized draft)||$20|
|Fees for Unpaid Balances (When Subway or its affiliate incurs the expense)||Costs of collection, including lawyers’ fees.|
|Transfer||$7,500 plus $3,000 for any satellite ($3,750, plus $1,500 for any satellite if the franchisee transfers to or transfers by adding their spouse or child to the franchise agreement)|
|Location Rent/License Fee||$1,000 – $6,000 per month, estimated.|
|Equipment lease||$2.70 per month per $100|
|Equipment Lease (upon transfer)||Transfer fee of 5% of buyout price.|
|Equipment Lease (upon early termination)||Early termination fee of remainder of monthly payments, limited to 18 months’ payments.|
|Equipment Purchase and Freight Charges||Cost of equipment and buffer to cover freight charges, taxes, and other costs.|
|Insurance||$1,200 – $5,000 per year.|
|Indemnification||All liability, damages, and costs, including lawyers’ fees, incurred.|
|Non-compete Violation||$15,000 for each competing store plus 8% of its gross sales|
|Confidentiality Violation||The franchisor’s damages.|
|Trademark Violation||$250 per day.|
|Operations Manual||$50, subject to change in the future.|
|Dispute Resolution||Half of arbitration fee, except franchisee will pay the whole fee plus costs, including lawyers’ fees, management preparation time, and travel expenses if he/she withholds money from the franchisor or an affiliate.
If the franchisee breaches the provisions of the Franchise Agreement regarding mandatory arbitration, or restrictions on damages or against whom he/she can arbitrate, or the proper forum for an action, the franchisee will pay Subway’s expenses and the expenses of anyone named improperly, including lawyers’ fees; the franchisee will be liable for abuse of process.
Probationary Case Management Fee – $500; Probationary Extension Fee – $250; Interim Order Case Management Fee – $250; Litigation Expense Fee to permit sale of restaurant -5% of gross consideration received for sale of restaurant, not to exceed $5,000
|Co-Brand Continuing Fee||0% – 8% of total gross sales of a co-brand concept.|
|Fees Charged by Co-Brand Franchisor||Fees and rates set by third party co-brand franchisor.|
|Optional Store Listing Service||$100 for each 90 day period.|
|Software License and Maintenance Fees – SubwayPOS||No monthly software maintenance fee if the restaurant is located in the United States. The franchisor may charge one in the future.
$35 monthly software maintenance fee if the restaurant is located in a territory of the United States.
|Software License and Maintenance Fees – SubShop/2000 (Co-branded locations)||$15 menu management fee, subject to future changes. At the franchisee’s option, cost to produce software update disk, plus shipping and handling, if the franchisee prefers to receive updates for SubShop/2000 by disk or other medium.|
|Progress DBMS (Co-branded locations only)||$47 annual fee, payable to a third party, subject to future changes|
|Required Payment Options||Payment Processing Fees:
-Acquirer Fee is $.0135 per transaction, subject to future changes
-Network and Interchange Fees vary depending on card brand and type of transaction. AMEX Network fee is up to 2.7% of the total transaction amount or 1.85% plus $.05 for a prepaid card transaction. Typical Network and Interchange fees for VISA, MasterCard and Discover range from $.22 per transaction to 2.4% of the total transaction amount plus $.10; subject to future changes
-Referral Fee is $.008
-Card Not Present Transaction Fee is $.115 per transaction. This fee may increase in the future.
|Subway Card Fees||– Initial fee of approximately $200.
– Redemption Fee equal to 2.5% of each transaction amount that applies when Subway Card is redeemed.
– Additional Subway Card supply costs $0.10 per card.
– Subway Card envelope, POP & Marketing Materials approximately $40 annually.
|Subway MyWay Rewards Program||Up to 1.9%, subject to any annual adjustments, of the gross sales, for each transaction made by a Subway MyWay Rewards program member at the restaurant.|
|Other Technology and Digital Initiatives||Varies as the franchisor implements various new technology initiatives.|
|Customer Complaint Resolution Fee||$2 – $20 per incident.|
|Taxes and Other Fees||Varies by State.|
|Training Fee||None; unless the franchisor grants franchisees permission to bring their store manager to training or they sign a rider which requires them to send their Manager or Director of Food Services to Training Program and they cannot prove that the store Manager, or Director is their employee and not a prospective franchisee, in which case franchisees must pay $7,500.|
|Subway Listens Program||None, except each customer receipt redeemed for two cookies or a 21 ounce drink will cost the franchisee approximately $.33 to $.35 per redemption.|
|Optional Loss Prevention Program Fees||None; however, if franchisee fails to complete the program, Subway will charge an administrative fee of $1,000.|
|Customer Complaint Resolution Fee||$2-$20 per incident|
|Limited Time Offering Auto Shipment||Varies as the franchisor implement new Limited Time Offerings.|