Subway Franchise: Be your own boss with Subway Franchising opportunities
Financial Assistance: The franchisor offers an equipment leasing program available to all franchisees in the United States (not including Puerto Rico), except those who are not in compliance with the Operations Manual. The franchisor deems the equipment lease to be a true lease and not a financing lease. The franchisor offers to finance $10,000 of the initial franchise fee under its minority loan program for qualified franchisees purchasing their first franchise at the full $15,000 franchise fee. In rare circumstances, one of the franchisor’s affiliates will acquire real estate and construct a free-standing restaurant under the Pilot Construction Program. After construction, including the leasehold improvements according to the franchisor’s requirements, a Subway franchisee will lease the premises. The franchisor may loan money to franchisees in connection with a Subway restaurant. The terms and purposes of these loans are negotiable. The franchisor may change or eliminate these loan programs and equipment leasing program without any prior notice to franchisees.
Training and Assistance: All individuals who sign the Franchise Agreement must attend and complete the Worldwide Training program at Subway headquarters to the franchisor’s satisfaction. In order to successfully complete the Training program, franchisees must have: (i) perfect attendance; (ii) an 80% grade on all pre-requisite web-based training courses and in the in-store component of the course; (iii) an 80% average of on the in-classroom quizzes. Classroom work accounts for approximately 53 hours, and franchisees will have approximately 33 hours of on-the-job training at nearby restaurants. Franchisees will be notified when additional courses become required.
Territory: Franchisees will not receive an exclusive territory under the Franchise Agreement or any related agreements. The franchisor may grant franchisees limited exclusivity rights to a territory under its Exclusive Area Development Program.
Term of Agreement and Renewal: The length of the franchise term is 20 years, with the exception of satellite restaurants and the School Lunch program. The franchise will automatically renew for additional 20 year periods, unless either party chooses not to renew, except for satellite restaurants and the School Lunch program. The franchisor has the right to refuse renewal if franchisees are not in full compliance.
Obligations and Restrictions: Even if franchisees do not personally supervise their restaurant, they must attend and satisfactorily complete the training program. Even if franchisees choose to employ a manager to supervise their restaurant, the franchisor strongly recommends they personally devote a substantial amount of time to the franchised business. Franchisees must operate the restaurant in strict compliance with all required methods, procedures, policies, standards, and specifications of the Subway system in the Operations Manual and in other writings issued by the franchisor.
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.